|The chart of AMAT, with the 10-day moving average and a short-term trendline, indicates that the stock may be a strong buy candidate. As of May 25, 2000, the price has approached the 10-day moving average and looks like it may face resistance at that point. However, if prices break above this moving average the critical point would be the short-term trendline- the point of confirmation.|
|If prices break above the trendline with heavy volume I would implement the following trading strategy:|
Enter long position at $87.00
Exit long position at $91.00
Place a trailing stop loss 1/4 point below price.
|Applied Materials, Inc. [AMAT] is beginning to show signs of a possible trend reversal.|
|Graphic provided by: CyBerCorp, Inc..|
|If, however, prices met resistance at this trendline and showed signs of reversing I would consider entering a short position. My trading strategy would be:|
Enter short position at $85.50
Exit short position at $82.50
Place a trailing stop-loss 1/4 point above price.
|Company:||Technical Analysis of Stocks & Commodities|
|Address:||4757 California Ave SW|
|Seattle, WA 98116|
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