Don't Ignore This Chart!

Intel Prints Shooting Star Candle

 | 

After gapping up off its recent uptrend, the buying continued on Intel (INTC) intraday on Friday as it surged to a high of 35.29.  By day's end, however, INTC closed at 34.66 - EXACTLY where it closed on its recent high on October 23rd.  Volume was very strong but leaving a long tail above resistance and failing to close above it has short-term bearish implications.  A filled candle would have been worse because that would represent a close below the open.  At least on Friday the bulls had a hollow candle with a higher close than open.  Still, INTC will open the week with much work left to do, a reversing candle and nearing overbought conditions.  Take a look:


Respect a heavy volume breakout this week as the combination of price/volume trumps all, but at least recognize that Friday's reversal could make it tough on INTC bulls as we start a new week.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus