RE: AMAT, interpretations and forecasts, etc.
On the daily chart you referenced in your post, AMAT made a hammer on Wednesday, followed by an up day, and then a nice little Doji on Friday. If you turn on the "Bollinger Bands" from the same chart generator, we can see that the bands indicate that AMAT is in a trading range between 92~93 and 100~101. Note also, that if we connect the TOPS, Friday's Doji just touched that top DownTrend Line and then bounced off. If AMAT opens where it closed, I think AMAT may make a "Shooting Star" next, as it probes the top of it's trading range (similar to what it did Monday one-week ago). If it opens very high on Monday, one would expect something like a "hanging man" next, with a black body. Of course, these speculations are based on the assumption that the most likely price movement is to repeat what it has done in the past!
The weekly chart for AMAT shows a Shooting Star at the TOP, followed by a bearish engulfing candle, another shooting star, a hung man, a Doji, another shooting star-like candle (probing the top of that trading range again), and then last week is a very neutral-looking white body (spinning top?). The weekly chart's UpTrend line shows support at 87, and a wedge-shaped triangle resembling a pennant. AMAT hasn't broken out (UP) of anything, yet; and the (purely technical interpretation) says that downside risk is -10 and the upside potential is +5... Would be an interesting CALL/PUT straddle.
-Steve |
