Watch these applied materials when the shares drop to China sales dropout

Applied Materials (Amat )'s shares fell in an extended trade on Thursday, after the manufacturer of Chip devices achieved a quarterly turnover under the expectations of Wall Street, during China's turnover.

Despite the decline in Chinese sales, which is about a quarter of the company's total turnover in the quarter, the company announced that it had not determined any significant changes to the customer issue, and added that it is still well positioned to navigate further developing macro. However, investors are still concerned that the USA could impose sector -specific tariffs for chips and electronics that have been freed from import duties since the beginning of April.

The Amat shares immersed in almost 40% between the end of January and early April, since the Trump government's trade policy, including the new KI chip license -could influence the company's turnover. However, the share has gathered by around 40% after a recently carried out trade war and ongoing negotiations between the two countries.

In the following we take a closer look at the used material diagram and apply technical analyzes to identify the price levels that investors will probably observe.

Focus on relegation channel

Since the achievement of a record high last July, applied material shares within a descending channel have leaned lower.

In recent times, the stocks over the upper trendlin of the pattern have been interrogated, but it has not decided to conclude crucially over the moving 200-day average of 200 days. It is also worth noting that the rally coincides with the relative starch index before maintaining, which moves into an overbought area and places the stage for profit stage.

In fact, according to the quarterly results on Friday, the shares seem to be re -enacted after the open trend lines of the descending channel.

Let us identify two important support levels in the used material diagram, in which the shares can encounter support and at the same time be worth monitoring over the head area that is worth while monitoring potential swings.

To observe important support levels

Applied material components fell by almost $ 16%on Thursday after trading in trading in trading on Thursday.

The first lower level that can be seen is around 158 US dollars. The stocks could arouse the purchase interest in this area near a short consolidation phase of the stock accumulation last Monday, whereby this place is also closely aligned with the tips that were founded on the charts in March and November 2023.

A final financial statements under this most important technical level could drop the shares to 145 US dollars. This region can offer support near a horizontal line that connects a number of corresponding price campaign on the table between December 2023 and April of this year.

Grand cost ranges that are worth monitoring

During the upswing in the share, it is worth monitoring the area of ​​190 US dollars. Investors who have bought stocks at lower prices can search for exit points in this region near a trend line that connects several tips and lows in the charts from April last to January of this year.

Finally, another upward trend could drive a step towards 213 US dollars. This area can deliver overhead sales pressure near a series of tips on the map from March to October last year.

The comments, opinions and analyzes that were expressed on investopedia are only used for information purposes. For more information, see our disclaimer for warranty and liability exclusion.

Until the date on which this article was written, the author has none of the above securities.