Applied Materials (AMAT) — The world’s largest maker of wafer fabrication equipment for the semiconductor industry is holding in a bull channel that began last November below $8.
On Nov. 9, with the stock trading at $12.65, I said, ” The channel has four major supporting points, the last of which was made on Tuesday as prices bounced from the major support at its 200-day moving average. Since the top of the bull channel is at $15, traders may want to try for a quick 17% run to that top.
“But Standard & Poor’s has a five-star (strong buy) rating on AMAT and has chosen it as its ‘Stock of the Week’ with a 12-month target of $17, so longer-term investors may be interested in purchasing the stock as well.”
On Dec 7, I said, “A break from the recent pattern of tops appears to be developing with high-volume buying and a stochastic buy signal. The target is $15 to $16.”
The breakout occurred just as anticipated, but the momentum is strong, so I’m raising the target to $17.
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