Intel is Going to 38 or Higher
- Posted by Greg Harmon
- on March 15th, 2012
Intel, like Microsoft, is one of those old school technology stocks that are coming back in favor. It has a nice 3.10% dividend. And the stock price cleared some major long term hurdles in October and December 2011 on the monthly chart below, breaking the descending triangle and then the prior resistance at 24.37. That triggered a buy recommendation (We have been long in our
accounts since December 2, 2011). But it is the recent short term activity that makes it even more exciting. Turning toward the daily chart below it is now breaking above a channel between 26.15 and 27.60, with a strong Candle Thursday resolving the doji from Wednesday higher. The break of the consolidation zone triggers a target of 29.05. But it also puts a continuation of the move higher, from 23 to 26.50 over 3 steps, in play. The target on the continuation higher takes it to 30.50. With
the Relative Strength Index (RSI) bullish and rising and the Moving Average Convergence Divergence (MACD) indicator crossing positive the path higher looks strong. But the good news does not end there. A look at the weekly chart reveals a continuation higher after consolidating the move out of an ascending triangle at 27 toward the target of 29. But the Measured Move higher out of the consolidation also sets a target of 31. The RSI is strong and rising on this timeframe as well and the MACD is positive and also supports further upward movement. So the daily and weekly charts both show targets of 29 and 30.50-31.00. Taking those back to the monthly chart above that
started this review shows that a move over 28.85 leave no more obstacles in the way of the target of 38 from the descending triangle breakout. Over that the previous high at and then the previous high at 62.44 come into play. On this longer timeframe the stock has been consolidating for nearly 10 years so a major move out of it should not come as a surprise. The good news is even if you missed the initial trigger there is still over 36% upside potential. And hey don’t forget that dividend.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Benzinga Premarket Talk Thursday Morning
- A Brief History of Trading and the Trading Stocks
- Premium Earnings 2-26-15
- 3 Reasons the Transports May Need to Refuel
- It Was Hard Saying Goodbye to Ruby Tuesday
- Premium Earnings 2-25-15
- Want to Short the US Market, Then Do it Against Germany
- Pancakes, Glue and Technicals – The Story of PerkinsElmer
- Premium Earnings 2-24-15
- Will the Transports Join the Party?