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How To Improve Your Trading In Feburary

Adam Hewison - MarketClub

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Today's in-depth analysis of Applied Materials shows a confluence of technical indicators that do not add up to a positive outlook for this stock. Remember, any analysis I do at MarketClub should not be considered a recommendation or an endorsement to buy or sell a particular security.

There is an old adage in trading that goes like this, "they slide faster than they glide". Translated, that means stocks go down faster than they go up. 

What Does This Company Do?

Applied Materials, Inc. (NASDAQ:AMAT) provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide.

To summarize, I expect the current (-90 Score) downtrend, in Applied Materials to continue. This outlook will only change if I see a change in the direction of the Trade Triangle technology.

If I am correct in my analysis, I could potentially see Applied Materials move down to the following Fibonacci retracement levels:
38.2% @ $15.07
50% @ $14.15
61.8% @ $13.22.

The 61.8% Fibonacci level of $13.22 also fits in nicely to the previous resistance level. The level of $13.22 should now act as support for this stock.

The double top/pivot point measurement if broken at the $16.40 level, indicates a move down to $15.00, which is very close to the 38.2% Fibonacci retracement level of $15.07 shown on the chart. These two measurements confirm one another and make a compelling case for this stock to trade lower in the weeks and months ahead. 

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