Read Larry Connors' blog – Short Term Trading Strategies
Everyone knows that INTC pretty much blew it in their 4th Quarter earnings release.
To make matters worse, rival (AMD | Quote | Chart | News | PowerRating) had great numbers that further sparked the massive rally in that stock, while INTC's stock is down nearly 20% since their earnings release. The question is, when does a disappointment become an opportunity?
Let's take a look at the chart of (INTC | Quote | Chart | News | PowerRating) since its earnings release on Jan 17:
As you can see, the stock continued to slide lower in a well-defined downtrend even after gapping down big on the earnings release before reversing at $21.10/share for a brief move higher. The stock then moved back down and again reversed off the $21.10/share level. Since that 2nd bottom of the double-bottom formation, INTC has acted fairly bullish and even started to establish an uptrending channel.
Short-term traders should look at INTC's current price as a buying opportunity with a stop just below the support level that was created by the double-bottom at $21.10. Longer term investors can add shares of INTC on this dip with the security of having a major support level just $1 or so below current levels.
At DaytradeTeam, we will be watching INTC and AMD very closely this week for short term stock trading opportunities. Stop by and check out a one week trial membership to see just how much we can help you maximize your day trading and swing trading profits.
Andy Swan
Andy Swan created and co-founded DaytradeTeam five years ago on a principle of empowering individual stock and options traders with the techniques and analysis methods typically reserved for elite professionals. His expertise in technical analysis and commitment to educating members earned DaytradeTeam a top-ranking among advisory services for several years.
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