The reason that make intel corp is fall
Intel Corporation (NASDAQ:INTC) has been one amongst the most well liked stocks in one amongst the most well liked sectors over the last period of time. With nice news from Western Digital business firm (NASDAQ:WDC) et al.within the semiconductor sector, each stock within the sector has seen a mega move higher. i’m here to inform youthat’s over, a minimum of for Intel. Below square measure the 3 reasons Intel Corporation (INTC) is ready to fall.
1. The stock has risen from $30.45 to $35.25 in two weeks. This is a monster move in a very short time for a mega large cap stock. History dictates that when stocks jump this far this fast, there is a pull back on the horizon.
2. Intel (INTC) put in what is known as a doji on the daily chart. This is a candlestick formation that signals the end of a move and a reversel.
3. The volume on the doji was the highest per day for the entire two week up move. This confirms the doji as a reversal signal. High volume when the stock price forms a doji signals distribution. Distribution is when big money unloads their shares to average investors.
4. This same area has a significant resistance point on the daily chart. If you zoom out and look back to October – December 2015, you will see a ton of choppy, sideways action where the stock previously topped. This creates an area known not only as a double top but as mega resistance for the stock. Expect this to add to the selling pressure.
These reasons together tell of a pull back on Intel Corporation (INTC). The likely pull back target is $33 in the coming month.