Donchian Channels Under the Gun For Applied Materials, Inc. ($NASDAQ:AMAT):: 20 Day Upper Donchian is 43.37

When certain portfolio stocks are performing poorly, investors may be prone to chase higher return stocks or move into safer stocks. As most investors know, short-term results have the ability to be somewhat misleading. Deviating from a well-crafted plan based on short-term market fluctuations can lead to portfolio trouble in the future. Having the proper mix of stocks in the portfolio may also be beneficial to longer-term performance. Pinpointing overall investment goals and regularly reviewing portfolio positions can help the investor stay on track.

Following the Chaikin Money Flow indicator, we note that the current 20 day value is 0.14164566 on shares of Applied Materials, Inc. (NASDAQ:AMAT). Traders will watch to see if the indicator can help confirm an ongoing trend. In the midst of a bullish trend, the CMF value staying above zero may point to continuous buying pressure and the possibility of a sustained rise in price. In the midst of a bearish trend, the CMF value staying below zero may show continuous selling pressure and the possibility of continued price decline.

Trading on volume of 66416, Applied Materials, Inc. (NASDAQ:AMAT) has seen a change from the open of 0.185 since the stock opened at 42.525. Monitoring today’s activity, the stock has hit a high point of 42.755 and slipped to a low of 42.525. 

Checking in on the Awesome Oscillator, we see that the reading is 1.521603. Traders may follow this oscillator to measure market momentum. Created by Bill Williams, the Awesome Oscillator calculates the difference of the 5 period and 34 period SMA.

The 20 day Keltner Channels upper envelope is 42.74728. The 20 day Keltner Channels lower envelope is 41.554703. The Keltner Channels indicator was introduced by Chester Keltner in his book How to Make Money in Commodities. Keltner’s ideas have since been expanded upon and are widely used by technical traders.

Donchian Channels may be useful for technical traders. The primary function of the indicator is to measure volatility. The bands will widen when volatility is high, and they will become narrow with low volatility. The 20 day upper band level is 43.37. For the same period, the lower band level is 40.61.

Shares of Applied Materials, Inc. (NASDAQ:AMAT) ended last session at 42.71. Following today’s trade, we note that the stock has moved 0.39962387% since the opening bell. The company has a current market cap of 40814387000. The stock’s high price over the last month is presently 43.39.

Watching volatility readings, we can see the current value for the stock is 1.8899126. Volatility for the week stands at 1.70396, and the monthly reading is 2.4416187. Volatility involves the amount of risk in relation to the amount of change in a stock’s value. 

Scanning the equity market, we note that the stock’s current Oscillator Rating is showing “Neutral”. Traders will take note of many different factors when examining a stock’s health. Flipping over to the Moving Average Rating, we see that the current sentiment is pointing to a “Strong Buy”.

The direction of stock market moves in the short-term are highly unpredictable. Many investors will be tempted to ride the wave whether the trend is buying or selling. Fearful investors may make hasty decisions such as panic buying or selling. Investors may feel compelled to buy stocks after a major run higher. This can be related to the fear or missing out. On the other end, investors may be quick to sell quality stocks when the market is in the midst of a broad sell-off. This behavior often translates into falling into the trap of buying high and selling low.

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