Applied Materials (AMAT) has pivoted to the upside this morning off of a near-term pullback low at 13.78, and now is pushing towards a test of yesterday's high at 13.96. If hurdled and sustained this should trigger upside continuation to my next optimal target zone of 14.10/20.

Let's keep in mind that the prior significant rally high occurred on April 26 at 14.57. Only a decline that breaks this morning's low at 13.78 will begin to argue that AMAT is tired and needs a rest period after its climb from the 13.16 low on December 16.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.