Applied Materials AMAT-Q declined from US$167.06 in January 2022 to US$82.67 in July (A-B) and then settled in two horizontal trading ranges between US$82 and US$113 and between US$108 and US$126 (dashed lines). This price action produced a bullish technical pattern known as a Duplex Horizontal (dashed lines). The recent rise above US$126 signaled a breakout and the start of an uptrend toward higher targets (C).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near $132 and then again near $125; only a sustained decline below the latter would be negative.
Point & Figure measurements provide targets of US$164 and US$174. The large Duplex Horizontal pattern (dashed lines) supports higher targets.
stock
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.