Breakout
I am long on Intel (INTC) since 35.05, and I have been aggressively accumulating on the pullbacks ever since.
Since my first analysis back in 2016 (see chart), I’ve been targeting the new all-time high level and beyond, which, we are getting close here as Intel is trading at 66.39 as of today.
- Uptrend is strong and healthy with well-defined higher lows (blue arrows)
- Recently broke above the year and half consolidations (horizontal red)
- Breaking out with strong momentum to the upside
- Not to mention Intel broke out of the “20-Year Base” back in late 2017
I want to continue to be long on Intel as it has a strong momentum to the upside (this is not a level to chase, though).
Trend Development
‘Prior resistance as new support’ (see arrows) is a classic way of looking at the trend as it starts to develop and gain momentum.
Stocks like this they tend to take it’s time to develop a trend before it can really make it’s move after strong cultivation. Most investors with lack of patience would get out of this stock (while the stock is volatile like in late 2018 and early 2019) and chase a high-flyer–and that’s how you get burned.
What we are seeing below (weekly-chart of Intel) is a construction of a base after base before it can truly make it’s run.
Yes, it is exciting to ride a stock like AAPL and TSLA and what they have gained in the last several months. But do you know that I’ve closed out most of my AAPL longs at around 320s recently that I’ve entered back in 140s (see my AAPL analysis from January 2019)? It’s because, it’s not stable when a stock goes parabolic as I don’t like to hold them too long.
But stock like Intel that takes it’s time while cultivating a strong/solid uptrend with base after base? I favor this kind of setup more than a parabolic movers–this is why I am holding full position on INTC while closing out most of my longs on AAPL.
I find it amicable how it took many years to build bases as it continues to establish higher lows in the process.
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HOLDING STATUS
As I’ve noted on the previous posts that, I am still targeting around 90-100s before I unload any of my shares on INTC. I did have call-options since 45s, and I’ve recently closed them out completely at 66s after a huge pop at earnings report on 1/24/20.
As of today, I am holding all of my shares which I’ve been accumulating since the March of 2017 and you can able to see below where I was buying the dips.
SEE PART 1, 2, 3, 4, 5, 6, 7, 8, 9
