Critical Support Zone For AMAT
AMAT made a statement today. Price action took the stock down to
the 15.75 level, and popped back to close around the high of the session. 15.75
to 16.00 represents a critical support zone. If today’s price low is violated,
then AMAT will hit an air pocket and price should slide quickly down into the
14.00-14.75 area. However, if AMAT can hold today’s low, then we have a nice
symmetrical two step pattern with a nice looking reversal candlestick that is
calling for buyers. With stops below Monday’s low, this represents an attractive
long set up.
For you “agile†traders, if a
long trade is entered and the stock falls below Monday’s low, it is not out of
the realm of scenarios to do a stop and reverse trade to pick off the Air Pocket
on the short side down to that 14.00 zone.
Good night all!
Derrik
Â
Â