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Intel Corporation (INTC) Stock Will Claw Its Way Higher

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Shares of semiconductor powerhouse Intel Corporation (NASDAQ: INTC ) have bounced over the past two trading days, joining the broader stock market. But unlike many parts of the market - which broke higher from sideways consolidation phases - INTC stock bounced off a critical near-term technical support area.

This not only promises a further bounce in Intel shares - it allows traders to clearly define their risk.

When Intel reported its latest batch of earnings a few weeks ago, its numbers - and its outlook - looked good. However, INTC stock sold off on the news. The post-earnings pullback totaled about 10% by last Friday.

Semiconductor stocks as a group currently find themselves at an interesting juncture in the sense that some of the larger stocks in the group trade like a mixed bag of fruit. Intel stock fell after earnings, but now it's bouncing. Nvidia Corporation (NASDAQ: NVDA ) exhausted itself after earnings last week and has since dropped , yet the broader semiconductor as represented by the Market Vectors Semiconductor ETF (MUTF: SMH ) continues to plug higher.

To me, this says that the trading opportunities should be focused on single-stock technical levels.

INTC Stock Charts

On the multiyear weekly chart, we see that while Intel continues to hold its 2009 support trendline, it has found plenty of technical resistance around the $38 area since late 2014.

Click to Enlarge

So far this area has been rejected three times, most recently following the latest earnings report in January. Note also that the purple-dotted 2009 support line coincides with the 200-week simple moving average (red), making this a critical area of support, currently around the $30-$31 area.

While this support area is of no direct concern to my trade idea in INTC stock today, it is important for greater context.

Moving on to the daily chart, we see that Intel stock had a classic "pop-and-drop" move on Jan. 27 following its earnings report. This is pretty similar to what we've witnessed in NVDA after its earnings report late last week.

Click to Enlarge

INTC stock initially popped on Jan. 27, but quickly reversed lower and closed in the red for the day. This set in motion the aforementioned 10% selloff that came to a halt last Friday (at least for now).

Last Friday, INTC found support at its 200-day simple moving average (red), which currently also coincides with the 2015 diagonal support line (purple-dotted line). The stock closed well off its intraday lows last Friday. This was followed by an up-day Monday, which in turn led my proprietary B2 Reversal Indicator to flash a buy signal for a trade.

Traders should eye a next upside target around $36.50, while using last Friday's lows around $34.80 as a last-resort stop-loss.

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The post Intel Corporation (INTC) Stock Will Claw Its Way Higher appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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