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5/5/99 Applied Materials (AMAT)
Points to watch: Watch AMAT in the coming days for a trio of possible trading opportunities: 1 long, 2 short. While technicals favor a continuation of recent weakness, with daily MACD giving a sell on 4/23 and a double top being confirmed on 4/29, a short term rally is possible. The stock closed yesterday at 53.16. Weak support exists at 52.25 and a strong resistance band is overhead at 54-55.
Long:The stock has been flirting with resistance for the past few days at 54-55. A break above 55 would lead to a retest of resistance at 60-61.
Short: On a break below support at 52.25 the stock would next find support at 48.5-49 for a 3-3.5 point trade. A break below Gann angle support at 48.5 would provide an opportunity for a larger trade, with a move to support at 38-41 likely.
