TopOptionAlert
Oct 21, 12:59 AM
$AMAT NOV20 415C · still actionable
Zone:
$402.15 to
$407.82
Invalidation: close under
$396.45
Objectives:
$430, then
$455
The math: up 6.2% to the first objective and 12.4% to the second, against 2.1% risk on the invalidation, better than 5 to 1 to the second
Dear friend, picture a swing setup where a big chip equipment name kept sliding and then found its footing near the floor today. Applied Materials closed at
$404.98 after buyers held the
$399.03 low above the
$396.45 support, even after a fall of about 13 percent in five sessions. What that means is the selling looks tired, the risk sits close below us, and earnings on November 12 can be the test that pushes price back toward
$430 first if that floor keeps holding. If price closes under
$396.45 the bounce idea is wrong and you step aside.
P.S. Watch
$412.46 first. It was the high today, and a close over it would show buyers pressing again, not just defending the low.
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