Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Intel May Be Nearing a 'Tradable' Bottom


Take a look at a technical analysis of the semiconductor company.

Without a doubt, technology stocks have been leading the market lower as of late. And within the technology arena, semiconductors have been particularly weak. Take Intel Corp. (NASDAQ:INTC), for instance. The big tech titan is trading 15% below its 20-week moving average and down almost 30% from its spring highs.

Granted, PCs are getting some gray hairs and there is some uncertainty here, but I am a technical swing trader. So I'm not going to make a huge fundamental pitch here (although one likely can be made).

My sole interest in Intel stock is for a swing trade. On Friday, Intel recorded a perfected weekly DeMark buy set-up 9, increasing the probability of a corrective bounce higher sometime over the next four weeks. Note that the chart below is a weekly chart, so it requires a wider lens for analysis, and maybe a bit more patience, as oversold can remain oversold longer than one thinks.

I built a 1/3 size starter position during the intense selling Thursday and Friday for an average price of $21.54. I will look to add on further downside towards $20, with a stop just beneath the $20 level.

Trade safe, trade disciplined.

Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.

Twitter: @andrewnyquist
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos