INTC Intel Weekly Chart Inverted H&S Patterns Overbot Rising Wedge Negative Divergence Developing

Intel has been on a tear higher taking no prisoners as long traders trip over each other to buy the chip darling. The price move is parabolic from the May bottom moving from 25.5 to 35.0 in only 15 weeks, +37%, a phenomenal move. INTC is moving up over +2% per week, every week, for over three months. This is wildly bullish behavior. The central banker easy money has to flow into something and Intel is one of the recent favorite flavors. The blue inverted H&S with head at 18 and neck at 21 targets 24 which was easily achieved. Then the green inverted H&S with head at 18 and neck line at 25 targets 32 which was achieved.

As always, day follows night, and all waves crest, and INTC is beginning to top out. The indicators are negatively diverged except for the MACD line that wants a higher high in price after a pull back. The other indicators will create the pull back over the next week or two, then up again at 35+, but at that time the MACD line would negatively divergence and announce the top.

So with INTC it is not attractive to be long or short right now. If you enjoyed the long side you can take half off the table now ahead of a pull back, then the other half when price comes back up to satisfy the MACD long and strong profile. Check the MACD line in a week or two to see if it has rolled over, if so, then a short position can be opened and scaled into with a retreat to 32 likely over the month or two ahead. 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 8:35 PM:  INTC begins the week on the downside losing -0.4% on 8/25/14 and ending the day at 34.81.