Thursday, January 17, 2013

INTC Intel Daily Chart Inverted H&S Overbot Rising Wedge Negative Divergence

The red lines show the negative divergence in place now wanting to see a spank down but the RSI and MACD line want to see another high after the pull back.  The weekly chart is long and strong wanting to see price move higher. There is a big gap below that should be buttoned up before INTC heads higher. Price is at the neckline of the blue inverted H&S, head at 19.5, neck at 22.5, so target is the gap above at 25.5, once price moves up thru 22.5.  The H&S from 2012 played out with head at 29, neck at 24 and target at 19.

This is an interesting set up for earnings after the bell today. Consensus is 13.53 billion in top line revenue and 45 cents EPS.  The negative divergence and rising wedge wants a quickie pull back so the guess would be down on the release.  The gap below remains in play. The overbot conditions and negative divergence will play out in January and February so price may favor a sideways move thru 20.65 (50-day MA) and 23.5 for the days and few weeks ahead. Overall, for the intermediate and longer term, the long and strong weekly chart points to higher prices ahead so the 25.5 target would be doable, with the inverted H&S pattern playing out, as the year plays out. The 23.0 and 23.5 congestion zones are important, that is a lot of S/R to chomp thru. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

 Note Added 1/17/13 at 4:15 PM:  More shenanigans. Earnings were released early during market hours, that was a mistake on INTC's part and should be addressed.  INTC spiked in the final two minutes of trading from 22.30 to close at 22.84 and is trading flat AH's. The EPS was 48 cents beating by three cents and the top line was 13.5 billion a hair light. The stock favored the 23 level after the release now down at 22.69 and drifting lower. 

 Note Added 1/17/13 at 4:23 PM:  INTC now down 2% to 22.27.
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2 comments:

  1. MCAPJanuary 17, 2013 at 4:48 PM

    tough break I didn't get my fill although the price traded through me entry when it whoshed to 22.06 and bounced for a 3/8ths having more hardware related issues again this evening that could be it I don't there were some very big trades in there to so liquidity can work against you sometimes on a scalp like it does in ES too many people trying to do the same thing.

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  2. Keystone SpeculatorJanuary 17, 2013 at 5:24 PM

    It will be interesting to watch MCAP since the RSI and MACD will want a move back up to 22.5-23.0 after this dip, then perhaps down to the gap fill, then longer term thru the year the bulls should win out. WTIC oil keeps leaking a bit lower, back under 95 tonight? China data uber important.

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