Today we've chosen to take a look at the point & figure chart of Applied Materials Inc (Nasdaq:AMAT) because the bears have recently been able to push the price below an influential level of support. As you can see below, this type of chart is constructed by using a number of columns that consist of a series of either stacked Xs or Os. A column of Xs is used to represent a rising price, while Os illustrate a falling price. Notice how the price has dropped below the $17.75 level. This breakdown could be used by short-term traders to suggest that the stock may be getting ready to make a move lower.
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