Intel (INTC) has been struggling to stay up with the market’s new highs recently.
TREND CHANGE
On May 3, INTC made a multi-year high of $29.27. Then, on May 8, INTC had an igniting gap down that broke the downtrend line off the daily chart.
GAP ACTION WAS TURNING POINT
Since that gap down, INTC has been struggling and making lower highs off the daily chart unable to find new buyers to push it higher. On August 7, INTC had a continuation gap down under a daily pivot pushing it lower in the hunt for new demand and price support.
Recently, INTC has been a focus in our trading room. We shorted INTC on Friday’s continuation gap down under the daily pivot, and on Monday, INTC gapped down again to provide a profitable intraday short trade.
BOTTOM LINE
The bigger picture of INTC gives several keys areas of demand for targets $22.50 and $20.50. Any bounce into $24.00 is a short-able opportunity for INTC.
THE TRADE
Initiate a short position in INTC on any bounce into $24.00. Targets lie at $22.50 and $20.50.
For more trading ideas see our daily Markets section.
