Shares of $AMAT have spent very little time in the red today despite a deep pullback in the major indexes.  With an hour to go in the session the stock is up just over 1.8% and is a top five gainer in the S&P 500 Index.  It appears $AMAT is set for a close above yesterday’s high.  Despite an afternoon rebound the $SPX is still trading well below yesterday’s high.

Trading notes:

At yesterday’s low, which marked a new 2018 low for the stock, $AMAT was down over 52% from this year’s high. 

$AMAT remains deeply oversold.  The weekly MACD indicator reached an oversold reading not seen since early 2001 early in late October.  It has only slightly recovered since then.

Daily MACD has been tracing out a bullish divergence since the late October lows.

We consider $AMAT a fairly low risk buy near current levels.  Nearby support is in place from $30.70 to $29.80.  A close back below yesterday’s low($28.80)would be a clear warning sign that a more prolonged basing process is ahead.

At time of publication we are long $AMAT in some managed accounts.