Here’s the setup I see in INTC
Everyone knows that INTC
pretty much blew it in their 4th Quarter earnings release.
To make
matters worse, rival
(
AMD |
Quote |
Chart |
News |
PowerRating) had great numbers that further sparked the
massive rally in that stock, while INTC’s stock is down nearly 20% since their
earnings release. The question is, when does a disappointment become an
opportunity?
Let’s take a look at the chart of
(
INTC |
Quote |
Chart |
News |
PowerRating)
since its earnings release on Jan 17:
As you can see, the stock continued to slide
lower in a well-defined downtrend even after gapping down big on the earnings
release before reversing at $21.10/share for a brief move higher. The stock then
moved back down and again reversed off the $21.10/share level. Since that 2nd
bottom of the double-bottom formation, INTC has acted fairly bullish and even
started to establish an uptrending channel.
Short-term traders should look at INTC’s current
price as a buying opportunity with a stop just below the support level that was
created by the double-bottom at $21.10. Longer term investors can add shares of
INTC on this dip with the security of having a major support level just $1 or so
below current levels.
At DaytradeTeam, we will be watching INTC and AMD
very closely this week for short term stock trading opportunities. Stop by and
check out a one week trial membership to see just how much we can help you
maximize your day trading and swing trading profits.
Andy Swan
Andy Swan created and
co-founded DaytradeTeam five years ago on a principle of empowering
individual stock and options traders with the techniques and analysis methods
typically reserved for elite professionals. His expertise in technical analysis
and commitment to educating members earned DaytradeTeam a top-ranking among
advisory services for several years.