Applied Materials Inc. (AMAT) is scheduled to announce its second-quarter results after the close of trading here on Thursday. The stock of the producer of semiconductor manufacturing equipment has rallied so far in May, so let's check further.
In this daily bar chart of AMAT, below, I can see that prices just made a new high from the October low. AMAT trades above the rising 50-day moving average line and above the bullish 200-day moving average line. The On-Balance-Volume (OBV) line shows softness in March and April but it has started to firm again this month. The Moving Average Convergence Divergence (MACD) oscillator recently moved above the zero line for a fresh outright buy signal.
In this weekly Japanese candlestick chart of AMAT, below, I see a bullish picture. Prices are in an uptrend and trade above the rising 40-week moving average line. The long white (bullish) candle sets the stage for further gains. The weekly OBV line has been gaining ground since October and confirms the price gains. The MACD oscillator is bullish and poised for a new buy signal.
In this daily Point and Figure chart of AMAT, below, I can see the software is projecting a potential upside price target in the $159 area.
In this weekly Point and Figure chart of AMAT, below, I can see a more ambitious price target in the $184 area.
Bottom line strategy: I don't know what AMAT will tell shareholders and analysts this evening, but the charts and indicators of the stock are pointed higher. Hold existing longs and consider adding to longs. The $159 area is my first price target.
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