Earlier this morning, Intel Corporation (INTC) hit a new 12-year high at 34.89, which is not surprising given the power of the huge multi-year base formation (discussed below in our 7/16/14 post) that was triggered in June, when INTC thrust above 28.00-29.30 neckline resistance.
That said, my pattern and momentum work within the current upleg that began at the Feb 2014 low of 23.50 argue that INTC is nearing a peak somewhere in the 36.20/60 target zone, after which I will be expecting a period of digestion and correction prior to upside continuation to my next optimal-target zone of 37.00-39.00 off of the huge base formation.
With the foregoing in mind, I would be a scale-up seller of some of my long position above 35.00. MJP 8/21/14
INTC's 6% up-spike in reaction to positive EPS and optimistic guidance about the future of the PC business (after 2-3 years of existential concern) has propelled the stock right to a test of the upper-boundary line of its price channel now at 33.55, from the Feb 2009 low at 12.05.
So far, in today's action, INTC is trading just above the upper-boundary line, which begs the question of whether or not the price structure will stall at all prior to embarking on much higher-upside trek off of a 10-year-mptbase pattern—towards 38.00 and possibly to 44.00?
While I cannot argue against taking some profits on INTC here (for anyone who is long), my work indicates that INTC otherwise is "a keeper," as well as a "buy into weakness" if it should correct into the vicinity of 30.00. MJP 7/16/14.
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