Intel Corp. (INTC) has been trading sideways between $56 and $62 since early April. Technical analysts call this a consolidation pattern. Consolidation patterns do not last forever so let's dig into the charts and indicators to see what is the next move for this chip maker.
In the daily bar chart of INTC, below, we can see the sideways price action. Trading volume during the pattern has diminished and that is not uncommon as the lack of a trend typically sends traders elsewhere for action and potential profits.
The On-Balance-Volume (OBV) line shows a rounding bottom pattern as traders slowly become more aggressive buyers. The 200-day moving average line is rising and the 50-day moving average line is beginning to bottom.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory and an upside breakout in price should generate a new buy signal from this indicator.