Send me real-time posts from this site at my email
Fan Yang

Intel (INTC) Completing a Year-Long Head and Shoulders Pattern

Intel Corp. $INTC is likely completing a year long price top, and opening up a bearish outlook going into 2019. If and when price breaks below $42 a share, INTC would be breaking the neckline of a head and shoulders pattern.

INTC Daily Chart

(click to enlarge)

Support at $42:
- Note that there is still support at $42.
- However, I would not rely on it outside of a short-term bounce or consolidation around it.
- Price held under the 200-day while the RSI held under 60 after it previously already dipped below 30. These are signs that bears are now in control.
- Along with general market risk aversion, these are reasons not rely on the $42 support. 
- But let's say we do get a bounce there at $42. 
- I would limit the upside to $46, which was the low and support in November. 
- A break above $50 is very unlikely, and would be a strong signal for bullish reversal.
Downside:
- If you believe the general equities market is done with its correction, the $40-$42 might be a good level to consider buying in. 
- However, if you believe we are just getting started and the market correction will take months to maybe even a couple of years, then, we should anticipate more downside in INTC.
- The next support could be around $37-$38. This was a key resistance back in 2016-2017. 
- I think this is a good support if the general market was stable. 
- However, because we are in a significant market correction, I would not be surprised if INTC falls down to the $33 area.
- This involves the 2017-low, and a lower trendline support. 
- If we see price around $33, with the RSI below 30, we can expect a rebound, especially if the general market also stabilizes. 

INTC Weekly Chart

(click to enlarge)

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue