Applied Materials Inc AMAT shares were trading over 11% higher premarket Friday, according to Benzinga Pro.
Source: Benzinga Pro
On Thursday, the company reported better-than-expected first-quarter financial results and issued second-quarter guidance.
Applied Materials stock is up over 57% in the last year. The stock also touched a new all-time-high of $189.47 during the trading day Thursday. Let’s look into the technical positioning of Applied Material stock, given this background.
Breaking Down Applied Materials’ Strong Performance and Fresh Highs
An analysis of Applied Materials stock reveals a positive outlook for both the short and long term, pointing to a favorable trend for the stock.
The stock has outperformed the broad market by more than two times over the past year, achieving well-distributed gains that have contributed to its positive momentum. As part of the semiconductors and semiconductor equipment industry, Applied Materials has outperformed 84% of its industry peers.
Notably, the stock is now trading at a new 52-week high of $189.47, in line with the broader market’s trend, as reflected by the S&P 500’s recent near-new highs.
Applied Materials Stock Technical Setup
The eight-day simple moving average, 20-day simple moving average, 50-day simple moving average, and 200-day simple moving average all suggest a “Buy” signal as the stock price ($187.66) exceeds these averages.
Increased trading volume in the last few days supports the upward movement, a positive indicator for a strong trend. With an average daily volume of 5,999,610 traded shares, Applied Materials stock also exhibits good liquidity.
Considering the recent strong price increases, the RSI at 73.08 has moved into overbought territory. Potential investors may want to exercise caution and wait for a consolidation or pullback before considering entry points.
