It’s the old dinosaur of a chipmaker, INTC again. This was one of the earliest NFTRH+ highlights (the chart in the post does not render because it was on a now-defunct biiwii.com server) in 2014. The long-term target, based on a long-term breakout, was 40. To this day INTC has not yet hit that target. But working at their snail’s pace, the charts still hold it open.
Fundamentally, INTC got into mobile chips and then scrapped the initiative. More recently, they are back in mobile, though offloading much of the risk through a partnership with a mobile chip maker Spreadtrum. Another consideration is that INTC reports earnings next week and fresh off my IBM disappointment (I sold due to waning fundamental conviction, not the chart, which is still at key support) I have to consider this. Also, the broad market has not yet negated our correction scenario.
Now on to what NFTRH+ does; manage charts, for anyone with an interest in this company. The daily chart shows INTC in something of a Symmetrical Triangle (often a continuation pattern). MACD and RSI are each good and AROON is in a positive trend. I’ve been watching this for a while now and finally felt it worth posting.
The weekly is in a Cup & Handle pattern, currently easing downward as it makes the Handle. It has not broken upward from the Handle and so is not yet actively bullish. The support zone is thick, and can reach down to 33. MACD is positive but working off prior momentum, as is RSI. AROON has retained its positive trend.
Finally, the monthly chart shows the 2014 breakout that activated the long-term bullish picture and target of 40. Again, all three lower panel indicators are in the green and INTC is above key support.
Given the questions in play (Intel’s earnings release, which is a wild card and a broad market view not yet switched to bullish) I am going to leave the buy/sell/stop loss parameters informal for now. The above is just a view of Intel in particular and a tech bellwether in general for your consideration.
But generally, a hold of the lower daily Triangle line keeps the picture bullish. A breakdown of that level and especially a loss of 33 (lower low) turns the picture bearish. The long-term monthly still targets 40 off of the 2014 breakout and the Cup & Handle theoretically targets 44.
Random Notes: SQM was added back on the pullback and BBRY increased. I’ve covered shorts in Tech and Semis, while still holding them in Oil and tentatively on Small Caps. Also, I took a straight short on SLV yesterday. We’ll see on that. My track record shorting precious metals has been anything but stellar lately. I am trying to keep a mindset where I don’t care what the market does. The main thing is for it to tell me what it wants to do and then be in line with it. Leaders are breaking to the upside while Dow and SPX lag. So the market is on the verge – by today’s in-day activity at least – of saying ‘correction/consolidation over’. We all know how ‘in-day’ can be a whipsaw, however.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.