It’s been a rough week for Applied Materials (NASDAQ:AMAT). After printing a new all-time high last Friday morning the stock has been steadily loosing steam. Today, shares are putting in a fifth straight lower high to go along with five consecutive loses. This sell off is pushing Applied Materials to new August lows. Quite a reversal from last Friday’s healthy earnings inspired action.
Is Applied Materials backing away from an important double top? Hard to call at this point, but it is certainly a possibility. The stock is piercing a key trendline that links the previous two monthly lows. Since early June Applied Materials has been tracing out a divergent high in the daily MACD indicator. Applied Materials is testing its 50-day moving average. This key level held the July lows after a nasty breakdown gap on the 24th. A clear take out of the $62.00 area open up the downside. Applied Materials is one to watch next week.
Note: Long Applied Materials in some managed accounts