NEW YORK (TheStreet) -- Applied Materials (AMAT) - Get Report took out its May low today and traded at its lowest level since the Oct. 15 spike low. Volume remained light as the fade off last Wednesday's high continued.

If the downside extends, Applied Materials will enter a major support zone. For patient investors, a very low-risk buying opportunity will present itself as shares begin to pierce the $18.70 area.

In the nine weeks following Applied Materials' powerful key upside reversal on Oct. 15, the stock zoomed upward by more than 35%. After a steep pullback from the December high of $25.70, the stock returned to rally mode on Feb. 2. Applied Materials ran all the way back to its late 2014 peak, but lacked the momentum to make any further headway.

By the March 25 flush, it was obvious that a major double top had been left behind. AMAT spent the next month in a tight consolidation just below its 200-day moving average as this long-term indicator began to roll over.

The next down leg began on April 27, after Applied Materials' deal with Tokyo Electron fell through. Shortly after the 8.4% flush, the stock bottomed in early May near $19.20. Applied Materials returned to consolidation mode at that point, a pattern that was beginning to take on a more bullish look with a higher low in June. Today that setup is broken and, despite its addition last week to Goldman's Conviction Buy List, the stock has hit fresh lows.

As the stock nears $18.65, it reaches the upper band of a major support zone. This is the stock's Oct. 15 low. Just below is Applied Materials' April 2014 low at $18.30. The lower band is marked by the stock's 2013 high of $18.20. As a bottom begins to form here, a divergent MACD setup will likely take form. This, along with declining selling pressure, will improve the possibility of a healthy rebound.

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At the time of publication, Morrow was long AMAT.