Applied Materials Shares Jump 3.4% to $190.01 on Strong Technical Momentum

Applied Materials (AMAT) shares rose 3.40% on July 2, 2025, closing at $190.01. This marks a two-day gain of 3.79%, driven by notable volume expansion to 8.8 million shares.
Candlestick Theory
Recent price action displays strong bullish momentum. The June 24th session formed a robust bullish engulfing pattern ($171.96 → $180.18, +4.78%), confirmed by above-average volume. This signaled a reversal from prior consolidation. Key resistance emerges near $190–$193 (psychological level and recent highs), while support resides at $180–$182 (consolidation base and June 30th low). The latest candle closing near the session high ($190.91) suggests persistent buying interest.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages illustrate a bullish alignment. Current price ($190.01) trades above all three, confirming an uptrend. The 50-day MA (~$182.5) crossed above the 200-day MA in early June, forming a "golden cross" – a long-term bullish signal. Short-term pullbacks are likely to find support near the 50-day MA. The ascending 200-day MA (~$168) reinforces the primary bullish trend.
MACD & KDJ Indicators
MACD (12,26,9) maintains a positive histogram since mid-June, supporting bullish momentum. However, the MACD line’s convergence with the signal line near current levels hints at potential near-term consolidation. KDJ shows the %K (87) and %D (82) in overbought territory (>80), warning of short-term exhaustion. While still trending upward, a minor pullback or sideways movement may precede further gains.
Bollinger Bands
Bollinger Bands have expanded following a period of contraction in late June, reflecting increased volatility. Price currently rides the upper band ($189–$191), typically indicating overbought conditions but also strong uptrends. The previous contraction near $182 anticipated this breakout. Sustained trading above the upper band may be unsustainable short-term, suggesting possible consolidation or a minor retracement.
Volume-Price Relationship
Volume trends validate recent price gains. The July 2nd surge occurred on significantly higher volume (+34% vs. prior session), confirming buyer conviction. Accumulation patterns appear in April ($128 → $149, +16.11% on 20.7m shares) and June ($169 → $190, +12.4% on 14.2m shares). Downside volumes (e.g., April 9th: -7.67% on 16.3m shares) failed to breach key supports, indicating resilient demand.
Relative Strength Index (RSI)
Current RSI (14-period) is approximately 65, nearing overbought territory (>70) but not yet extreme. RSI has consistently held above 50 since mid-June, affirming positive momentum. While not a standalone reversal signal, proximity to 70 warrants caution for near-term pullbacks. The absence of bearish divergence (price highs align with RSI highs) tempers immediate reversal risks.
Fibonacci Retracement
Applying Fibonacci to the upswing from the April 3rd trough ($126.95) to the July 11, 2024 peak ($245.84) reveals critical levels. The 61.8% retracement ($190.70) aligns precisely with current resistance. The 50% level ($186.40) and 38.2% ($182.10) offer support. Price is challenging the 61.8% level – a decisive close above $193 would open the path to the 78.6% retracement at $205.
Confluence & Divergence Notes
- Confluence: The $190–$193 zone combines psychological resistance, Bollinger upper band, and the 61.8% Fibonacci level, making it a critical technical battleground. Sustained buying above this area would signal robust bullish intent.
- Divergence: While MACD momentum remains positive, KDJ’s overbought status and narrowing MACD histogram suggest short-term fatigue. However, strong volume and moving average alignment limit downside risks.
Final Assessment
Applied Materials exhibits a structurally bullish trend supported by volume, moving averages, and MACD. The proximity to multi-tiered resistance at $190–$193 warrants tactical caution, with potential for consolidation or minor pullback to $182–$185 (50-day MA & 38.2% Fib). A confirmed breakout above $193 would likely accelerate gains toward $205. Downside appears contained above $180 absent volume-backed deterioration.