The Rule Of Four
Many of the subscribers to Trading Markets.com
are familiar with the Rule of Four – where a stock can break out over a triple
top or break down beneath a triple bottom. What they may not know is that this
setup does not only take place on a horizontal plane.
Â
12:06:24
 Intel (INTC)
is staging an angular Rule of Four/descending triangle breakout. INTC is
trading at 29.81, up 0.08, and is carrying a 3-month
relative strength rating of 19 from TradingMarkets.com.
Â
Â
While the three-month RS of INTC may be low, many factors
are making this issue shine. In addition to the breakout from the setup, the
stock has recaptured the 20- and 50-day moving averges and is currently trading
at its intraday high, up 0.78 at 30.51. Will Intel continue to climb? I do not
know for sure, but it is very likely we will see at least a test of the old
highs in the 32 area.
Scroll through the setups and charts at the end of the trading
day and see which of them fit into your trading style and parameters.
Until tomorrow,
Duke