Don't Ignore This Chart!

Intel Goes for a Big Breakout $INTC


Some sixty stocks in the S&P 500 were up 5% or more last week, and Intel was one of them. Intel's importance seems to have diminished over the years, but it is still an industry gorilla that accounts for around 11% of the Semiconductor ETF (SMH) and 8% of the Semiconductor iShares (SOXX). The chart shows Intel breaking out to new highs and leading the market for a few months in 2016. The stock then moved into a long consolidation and traded flat the last 12 months. On the bullish side, notice that the breakout zone turned into a support zone and Intel consolidated above the breakout (blue zone). In addition, a consolidation after an advance is typically a bullish continuation pattern. Thus, a breakout would signal a continuation of the 2016 advance We are already seeing signs of strength with a break above the triangle line and an upturn in the price relative (INTC:SPY ratio). 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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