INTC Intel Daily Chart Overbot Rising Wedge Negative Divergence

Since AAPL laid an egg, the new tech darling is INTC, pundits now professing this stock as the best thing since sliced bread. Let's take a look. The weekly chart shows negative divergence across all indicators, immediately nails are hammered into it's coffin. This daily chart shows negative divergence as well with the red lines in the six month time frame. Nearer term in the one month time frame, negative divergence also exists for the MACD histogram and money flow. Stochastics are overbot and have no where to go except down. The blue rising wedge is also indicating a pull back is needed.

The red circle shows the gap up move after earnings. This circle now represents an island top. At some point forward, price may reverse in a heartbeat, falling down to 23.5 in a blink of an eye creating an island reversal. Regardlessof whether the island reversal occurs or not, that huge gap at 23.5-24.0 will need filled. Note that the RSI, MACD line and money flow, in this latest tight couple week time frame (green lines), show long and strong strength. To satisfy these green lines that are going against the negative divergence, rising wedge and overbot conditions, that are all demanding a spank down occur now, price will more than likely moderate a few days at this current level to satisfy this itty bitty strength shown by the green lines. As this occurs, the sideways price action will create a nicer island inside the red circle, then she should be ready to roll over.

Note for the higher highs in price now, the volume is lower than the May period showing decreased bullish participation. The big boy traders are simply looking to distribute some shares to Joe Sucka now who is getting caught up in the hype from the pundits. The last fools in are currently buying.  Note the blue circles which highlight where price crosses the 20 and 50 MA's. In every instance a smack down occurred within one to three weeks later, and, price just crossed a week or two ago. What do you think will happen?

Projection is for the island top to stutter sideways perhaps a couple few days, inside the red circle, then price will roll over and collapse due to the negative divergence, overbot conditions and rising wedge. An island reversal may occur immediatley dropping price to 23.5 in a blink of an eye, or, if not, then the gap at 23.5-24.0 will require filling anyways. Next support is 23.0, then lower, at that point, as price is falling, watch the 20 day MA as the next support, and that will fail as well. Price is expected to move lower, sideways to sideways down, for the weeks and months ahead. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here or on any links attached to this site. Consult your financial advisor before making any investment decision.