Applied Materials (AMAT) were trading lower Friday as traders react to an earnings miss and fundamental analysts cut their price targets for this semiconductor maker. Let's check out the charts and indicators.
In this daily bar chart of AMAT, below, that prices made a quick downside reversal in January and continued lower into May. Prices bounced for a few days but now we see a retest of the May low underway. AMAT is trading below the negatively sloped 50-day moving average line. The slower-to-react 200-day line also has a negative slope.
Trading volume has been heavy since January but has actually declined since the middle of January. Increased trading volume into May would be the pattern we prefer to see.
The daily On-Balance-Volume (OBV) line has declined from December. The Moving Average Convergence Divergence (MACD) oscillator is trying to turn higher for a cover shorts buy signal but it is struggling.