Applied Materials testing Resistance
Applied Materials Inc. (AMAT) is testing Resistanceline and we might see a fall in price during the next couple of weeks.
RSI is above 81 which indicate overbought situation. We have seen RSI above 80 before and the price always drops, so we believe it will happen again.
So is Applied Materials worth investing in ? Yes, AMAT is inside a strong uptrend, and will probably continue upwards.
We are just waiting for the price to test supportline or the Moving Average 100 (MA100) line.
Within the last year, AMAT has tested MA100 line and each time the price has started to go up.
We are ready to go long when the price is down at area 47-48 when MA100 is tested or when we test supportline.
Better be safe than sorry