Don't Ignore This Chart!

Intel Holds Support with Three Day Reversal


Intel (INTC) was hit hard the first three days of February, but the stock managed to hold support with a high volume reversal over the last three days.  

First and foremost, the long-term trend is up because Intel recorded a 52-week high in late January and the 50-day EMA is above the 200-day EMA. 

Second, the stock has solid support in the 42-43 area. The stock tested this level with bounces in mid-December and mid-January. Intel managed to hold just above this support zone with Tuesday's low. 

I expect this support zone to hold because Tuesday's reversal occurred on high volume. In addition, the stock followed through with further gains on Wednesday (provided they hold). 

With the long-term uptrend intact and a successful support test, I would expect Intel to move higher in the coming weeks and hit a fresh new high. 

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

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
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus