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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (31664)	7/28/1999 11:22:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 70976

Gottfried, To give a specific update on AMAT - now that we covered the sector risk on the PnF thread. AMAT still has an RS in X's and above the BSL which is positive. Currently the momentum is positive but the chart is on a sell signal, meaning that during the last decline it broke previous support. For the chart to regain a buy signal it would have to move to 80. With the sector being negative and the short term indicators being negative AMAT will have a lot of resistance obtaining that goal. I'm not saying it won't, just that it will be difficult. The main support is at 68 which is the BSL and where AMAT has to hold during any decline to remain in positive trend. Should it break that support the trend becomes negative and it is vulnerable to a larger decline. Should the RS turned negative (which it isn't in danger of right now) the decline could be dangerous. This is all just info right now, I'm not making any predictions. Right now AMAT looks fine. I wouldn't worry about it unless it broke 68 by moving to 67. What is important is to understand that AMAT is having trouble moving to new highs because the sector is negative and the short term market conditions are negative. I know nothing of the fundamentals but if they are good, once the sector regains a positive stance along with the market, it should continue to move nicely.