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Fan Yang

Intel Corp. (INTC) at the Crossroad with Heavier Bearish Signs

Intel Corp. $INTC has been bearish-neutral in the second half of 2018. It is now trading within a range. The consolidation has been setting up for a month, and it looks like the market is looking for a breakout for the next directional swing.

INTC Daily Chart

(click to enlarge)

Bullish Signs:
- INTC is showing some bullish signs. 
- Price broke above the falling channel resistance.
- Price action since August looks like a rounded bottom, setting up for a bullish continuation breakout.
- If price does eventually close a week out above $50, we might be looking at a bullish continuation, or at least a test of the $57-$57.50 highs on the year. 
Bearish Signs:
- There are heavier bearish signs though.
- The most obvious has to do with the fact that price DID break above key resistance around the 200-day simple moving average and the $50 handle. However, price immediately retreated. This failed bullish breakout can be interpreted as a bearish sign, especially because price was held under the 200-day SMA.
- Furthermore, the RSI held under 60, which reflects maintenance of the prevailing bearish momentum.
- Now, a break below $46.50 is likely going to open up the $42.50-$44 support area. 
- This might lead to some capitulation and bearish correction towards the next key support, which is around $38.
- Note that the 200-week SMA is right around $38 as well. 

INTC Weekly Chart

(click to enlarge)