Working Money magazine.  The investors' magazine.
Traders.com Advantage

INDICATORS LIST


LIST OF TOPICS





Article Archive | Search | Subscribe/Renew | Login | Free Trial | Forgot ID?


PRINT THIS ARTICLE

MOVING AVERAGES


Time For Intel To Hold Or Fold

05/04/05 02:29:56 PM
by Arthur Hill

A recent breakout on good volume bodes well for Intel as long as key support holds.

Security:   INTC
Position:   Accumulate

Starting with the weekly chart for some perspective, we can see that Intel challenged the January 2004 trendline (blue) in November and December, but did not fully break above until February 2005. This breakout coincided with a break above the 40-week simple moving average (SMA), which is equivalent to the 200-day SMA (40 x 5 = 200).

With the trendline (black) and moving average breaks, the October 2002 trendline now holds the long-term key. A move below 22 would break this trendline and the 40-week SMA to put the bears back in control.

Figure 1: Intel daily chart. Turning to the daily chart for some details, we can see clear support around 22 for INTC and a falling wedge breakout in late April. The move occurred on good volume (green arrows), and the stock held its gains over the last two weeks.
Graphic provided by: MetaStock.
Graphic provided by: Reuters Data.
 
Turning to the daily chart for some details (Figure 1), we can see clear support around 22 and a falling wedge breakout in late April. The move occurred on good volume (green arrows), and the stock held its gains over the last two weeks. This reinforces support at 22 and the next test is resistance around 25.5.

The stock formed a large trading range between 22 and 25.5 over the last six months. A break above 25.5 would break trading range resistance and call for further gains. This would be most bullish for Intel (INTC), the semiconductor group and the Nasdaq overall. The next stop would then become the resistance zone around 30-35.



Arthur Hill

Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.

Title: Editor
Company: TDTrader.com
Address: Willem Geetsstraat 17
Mechelen, B2800
Phone # for sales: 3215345465
Website: www.tdtrader.com
E-mail address: arthurh@tdtrader.com

Traders' Resource Links
TDTrader.com has not added any product or service information to TRADERS' RESOURCE.

Click here for more information about our publications!


Comments or Questions? Article Usefulness
5 (most useful)
4
3
2
1 (least useful)

Comments

Date: 05/04/05Rank: 4Comment: 
PRINT THIS ARTICLE





S&C Subscription/Renewal




Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2019 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.