Previous Analysis: “3 Stocks Set 2 Soar: MGM TXN INTC“
It’s absolutely amazing to see Intel (INTC) has been cultivating the base for the last 15-years since the crash in 2000. It was a tough bet for the investors if they bought after the crash in 2000 as they are, now, finally reaping harvest after 16-years of waiting. But, if you’ve in long in this stock recently (for long-term traders & investors), probably the best time to get in for the all-time-high target around 70s within 5-years.
Looking at the chart pattern, we can see that the downtrend (dotted red) resistance has been nullified, and now the uptrend (blue line) has been developing since 2010 while faithfully establishing higher lows and higher highs. Recently (this year 2016) though, we have formed intermediate-term uptrend and looks poised to move much higher with an intermediate-term target of 42-43.
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I trade my analysis, so, I initially went long with calls back in late-2015 at 33ish and closed out most of our positions at 38ish in early-October of this year. Then after about 11% corrections in October, I got long again with Calls (LEAPS) at 33.88 on November 4th (as you can see in the chart below).
I’ve decided to go long at 33.88 because this was the last level of my Fib. Retracement Zone, which I came to a conclusion that the level could be acting as strong support. Well, it did, by forming double-bottom reversal; I had to be patient for about a month, but it’s playing out well as of today as the stock is now trading at 36.80. My next minor-term target is at 38-ish, “gap-fill resistance,” which I may unload some positions there.
I will write follow-up article on INTC as we continue to be on the watch for ATH target at 70ish.
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Post Update: 1/24/2017
“My next minor-term target is at 38-ish, “gap-fill resistance,” which I may unload some positions there” (from the previous update). Well, I did exactly that closing 30% of my holding positions @ 37.66 earlier today. I am very bullish on INTC for long-term, but with ER coming up just in few days and hitting the “Gap-Fill” resistance, I wanted to unload some positions here to manage risk. ER plan? I will be holding remainder of my positions through the ER. If we see a sharp decline after the ER, I will be preparing to buy that dip; if we see a jump, I probably hold my positions for more upside. That’s my plan for now, let’s see how it reacts on the ER day.