Trading Idea - Is Applied Materials close to Support?

Published on Tuesday, 07 February 2012 06:20 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of Applied Materials, Inc. (NASDAQ:AMAT) finished near calculated support at $11.98.

Current price action with, the provider of nano-manufacturing technology solutions closed at $12.61 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Applied Materials' current stock range is defined by current calculated support defined at $11.98 and by the resistance level at $12.89.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay 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 $12.89 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.