Crazy Trend Line Spells Trouble For $AMAT
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I use trend lines to predict pops and drops on stocks that are extended. In the case of Applied Materials, Inc. (NASDAQ:AMAT), I came across an astounding one. The current price of Applied Materials is hitting a trend line that was made between 2013 and 2015. This is very rare and thus carries more weight. When I short a stock like Applied Materials, I obviously use more than just a trend line. You must also look at indicators like MACD, RSI and Stochastics, plus fundamental valulation metrics. In the case of Applied Materials, all are extremely overbought and its P/E ratio is historically stretched. I am short Applied Materials and ready to profit on a pull back to $35.00.
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This article was written by Tony Jackson for on .
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