Trading Idea - Is Applied Materials close to Support?

Published on Monday, 08 February 2010 07:50 Written by Christian Paolinetti

New York, Feb 8^th (TradersHuddle.com) - Shares of Applied Materials, Inc. (NASDAQ:AMAT) are trading very close to calculated support at $11.66 with current price action closing at just $12.23 places the stock price near levels where traders will start paying attention.

Applied Materials, Inc. (NASDAQ:AMAT) provides nanomanufacturing technology solutions for the semiconductor, flat panel display, solar, and related industries worldwide. The company provides a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits. Applied Materials' customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar cells, and other electronic devices manufacturers.

Applied Materials' current stock range is defined by current calculated support defined at $11.66 and by the resistance level at $14.94, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Applied Materials' price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $14.94 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.