TopOptionAlert
Oct 27, 11:32 AM
$AMAT NOV20 400C · still actionable
Zone:
$384.88 to
$390.30
Invalidation: close under
$378.20
Objectives:
$410, then
$435
The math: up 5.8% to the first objective and 12.2% to the second, against 2.4% risk on the invalidation, better than 5 to 1 to the second.
Dear friend, picture a chip equipment maker that spent Monday climbing back, up 2.74% to 387 dollars and 59 cents after buyers stepped in near the low of the day. This swing simply rides that bounce, and the extra push is plain to see: the company said it will lift its stake in a chip equipment partner to about 20%, which in plain words means it is putting more money behind the tools other chip makers need. If buyers keep walking it toward 410 dollars first and then toward 435 dollars, the bounce becomes a real run, and a close under 378 dollars and 20 cents tells you the bounce failed and we step aside.
P.S. Watch 393 dollars and 18 cents, the Monday high, a move through it puts the bounce back in charge.
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