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AMAT Setting Up Well With Earnings Approaching

Semiconductor stock Applied Materials (AMAT) is setting up well for a potentially strong move higher. The semiconductor space has been a focus of mine over the past few months due to the semiconductor chip shortage. I took positions in NVDA and AMAT in late May. My Nvidia position is currently my strongest holding while I was stopped out of AMAT after buying it. While it can be frustrating to be knocked out of a stock, it is just part of trading. The key is to not tune a stock out completely and to watch to see if another entry point presents itself. This looks to be the case with Applied Materials. After shaking out below the 50-day moving average in July, AMAT has really been tightening up over the last week. Compressed action like this on the right side of a base is extremely constructive. I took a position in AMAT around $144 on Monday. It is important to note that Applied Materials is set to release earnings in two weeks. Earnings season always adds added volatility so risk management as usual is an essential aspect of profitable trading.

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Full Disclosure: I currently own AMAT.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


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