TopOptionAlert
Oct 19, 9:20 AM
$AMAT NOV20 420C · still actionable
Zone:
$406.43 to
$412.15
Invalidation: close under
$396.45
Objectives:
$434, then
$474.04
The math: up 6.0% to the first objective and 15.8% to the second, against 3.1% risk on the invalidation, better than 5 to 1 to the second
Think of this swing setup like a good work truck that slid on a wet road and is still sitting upright in its lane. Applied Materials fell 19.3 percent in five sessions and closed Friday at
$409.29, down 4.8 percent that day, yet buyers held the
$407.26 low and kept price above the
$396.45 support underneath us. What that means is simple. The selling has been loud and fast, readings near 29 show how tired it looks, and if that floor holds price has room back toward
$434 first and
$474.04 next into earnings on November 12. If price closes under
$396.45 the bounce story is wrong and you step aside, plain and simple.
P.S. Watch
$407.26 on Monday. It was the low on Friday, and a second hold there would tell you buyers are still defending the bottom, not just visiting it.
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