Earlier this month I watched the correction in Intel Corp. (INTC) unfold and wrote, "with the close below $44 on INTC, traders should be flat. INTC may or may not decline to $39, with some minor chart support around $40. The best strategy right now would be to let others step up and buy INTC. When support materializes, we can take another look at this Dow component." INTC is trading higher this Friday morning with prices at a new high ahead of the NYSE open. Let's check on INTC now that it looks like its correction is over.
In this daily bar chart, below, we can see a sideways price pattern the past three months between $47/$48 on the topside and the $43-$42 area below. Now INTC is above the flat to rising 50-day moving average line. Prices are also well above the rising 200-day line. The volume pattern has been "interesting" in that is has spiked on the upside and the downside.
The daily On-Balance-Volume (OBV) turned flat for November and December as prices moved down and up but the line has slipped lower so far this month. A declining OBV line happens when sellers of a stock are more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is turning back to the upside for an outright go long signal.
In this weekly bar chart of INTC, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line shows some softness the past three months. The weekly MACD oscillator crossed to the downside for a take profits sell signal but the current market action could soon turn this indicator bullish again.
In this Point and Figure chart of INTC, below, we have a price target in the $52-$53 area.
Bottom line: Still long INTC? Great. Looking to get long INTC? Try to buy any dip towards $47, the top of the trading range since November. Risk a close below $44 looking for gains into the low $50's.