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
