Chart of the Day: Applied Materials: SWM 11/24/2021

Chart of the Day:

Applied Materials

(AMAT, Nasdaq)

ACB. 149

Stop: 124.53

• AMAT has seen its five-year sales and profit growth nearly triple the last 12 months and I featured it when we added the position earlier this month at 149.

• The company seems well positioned as they feed the semiconductor space at a time of global shortages.

• Technically Speaking:

• Beautiful retest here and great potential for a breakout, retest, breakout setup.

• Broke out of a seven-month base last month, and this week it looks to be re-testing the breakout zone.

• I really like the look of Tuesday's action as they bought the dip as AMAT retested and bounced while holding the 21 Day EMA.

• Futures look set to open weak Wednesday morning so we'll be watching for support at the breakout level.