Today's analysis will be on Intel Corporation. Intel is a tech giant company that engages in the design, manufacture, and sale of computer and technology products.
One of the main reasons I chose Intel today is due to the high volatility and unpredictableness of the recent market movement. If you have been actively following the recent market movements, you would know that it has been quite uncertain. Therefore, I am introducing a relatively involatile stock to stay safe in the choppy market.
Intel is considered a value stock than a growth stock meaning that it has a lower growth rate but consistency. Growth stocks are less volatile and priced more conservatively.
As always, let's start with the daily chart.
Intel is currently sitting at a significant level; if it bounces, it will be bullish for the long term and vice versa. Why? Let's take a look.
Currently, it is in an ascending wedge pattern which may signal a potential breakdown of the structure. However, for the last 2 weeks, it has been forming a bullish flag pattern. Moreover, it is currently touching the 200 moving average line, which indicates a potential bounce from it. In addition, it is currently at the blue support zone, which is the low of the candle just before the significant gap down. When such things happen, the low of the candle before the gap down acts as a resistance, and once broken, it acts as a support.
I will enter the trade above $55 (pre-market high) and set a stop loss below the lower trendline.