Applied Materials, Inc. is a materials engineering solutions provider. Co. provides manufacturing equipment, services and software to the semiconductor, display and related industries. Its segments include Semiconductor Systems, Applied Global Services (AGS), and Display and Adjacent Markets. Semiconductor Systems segment develops, manufactures and sells a range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs).
When researching a stock like Applied Materials, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from AMAT Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for AMAT stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the AMAT 200 day moving average ("AMAT 200 DMA"), while one of the most popular "shorter look-backs" is the AMAT 50 day moving average ("AMAT 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Applied Materials. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AMAT 200 DMA and the AMAT 50 DMA, we get a moving average convergence divergence indicator ("AMAT MACD"). The AMAT MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis