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Lay Claim to Applied Materials

by Sam Collins 11/09/09

Applied Materials (AMAT) -- The world's largest maker of wafer fabrication equipment for the semiconductor industry is holding in a bull channel that began last November at below $8.

AMAT Chart

Chart Legend

The channel has four major supporting points, the last of which was made on Tuesday as prices bounced from the major support at its 200-day moving average.

Since the top of the bull channel is at $15, traders may want to try for a quick 17% run to that top.

But Standard & Poor's has a five-star (strong buy) rating on AMAT and has chosen it as its "Stock of the Week" with a 12-month target of $17, so longer-term investors may be interested in purchasing the stock as well.

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