Technical Analysis for Intel (NASDAQ: INTC)

April 13, 2010, 20:38 pm ET, BY Thomas H. Kee Jr- Editor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

According to our combined analysis, INTC is rapidly approaching longer-term resistance.  This is based on a technical analysis we conduct for INTC every day.  The longer term parameters are well defined, and the patterns tell us that the stock is in the process of increasing to test the longer term resistance level in that report. 

We have defined longer-term resistance as longer-term parameter #3, and from that parameter, the plan for trading INTC is clear.  If resistance holds, expect INTC to decline all the way back to support.  Longer-term support, as defined in that same report, is defined as longer-term parameter #1.  A pullback from resistance to support is normal, but not always the case.

Alternatively, INTC could break higher.  If longer-term resistance breaks higher instead the stock will experience a breakout.  That will cause the stock to surge, and that will be a bullish indicator instead.

However, unless a breakout occurs, INTC will remain in a longer-term neutral trend.  Although the near term and midterm patterns are strong, the longer-term trend is much more important, and it is neutral.  If the stock fails to break above longer-term resistance as defined in our report, that neutral pattern will send the stock lower from resistance after resistance is tested. 

Otherwise, if longer-term resistance breaks higher, the pattern will transition from neutral to strong as well, and that would be a strong buy signal longer term too.  More importantly though, trading around a defined parameter like this gives you the ability to control your risk at the same time.  Never trade in the middle of a channel, and limit your decisions to tests of important support or resistance lines instead.  In this case, resistance is near. 

Immediately, INTC appears to be facing headwinds, and that is defined by longer-term parameter #3 in our report.  How it handles that test will be the determining factor in making buy or sell decisions in INTC from here.

Download our report now, and focus on longer-term parameter #3:

http://stocktradersdaily.com/stock-quotes/intel-INTC.html

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