After closing lower for three days in a row and trading in oversold territory back in mid-January, shares of Intel (NASDAQ: INTC) proved an irresistible opportunity for short-term traders looking to buy weakness in a bull market.
Intel had been on a tear heading into mid-month. From its last finish in technically oversold territory on January 19th, INTC had gained well over 11% in three weeks, and rallied to a new, 52-week high.
INTC had closed higher for three days in a row – six out of the past seven – ending overbought when the selling began: three days of profit-taking that sent the stock to new, short-term lows and back into oversold territory for the first time in a month.
That evening, subscribers to our free newsletter, 7 Stocks You Need to Know read this:
1. Intel Corporation (NASDAQ: INTC)
Trading lower for a third day in a row, Intel Corporation is undergoing another round of profit-taking after rallying to overbought conditions near long-term highs. The stock has a 7 out of 10 rating, which puts the stock at the upper end of our “neutral” range, and a modest, short-term positive edge that will likely increase if sellers remain on the offensive in the stock.
As the chart above shows, the only offensive in INTC was the one led by traders intent on acquiring shares at almost any price. The stock soared immediately after we highlighted it in 7 Stocks You Need to Know, closing higher for the next six days in a row.
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