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

Announcement from the Author

{{ announcement.content }}

Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. 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