Intel is breaking out of a beautiful slow round bottom today. An AB=CD (yellow thick lines) projects a target of about 64, which also coincides with a 61.8% Fib extension. You can see price went a little higher than the previous high. There are no resistance areas above us on the daily or weekly charts.
Stochastics are not yet overbought and volume has been increasing. The round bottom bounced off the 20sma and the 50% Fib retracement.
Normally I would definitely take a long position on this, but there's an Earnings Report due out after the market close on 1/23/20. I normally don't hold a position over an Earnings Report, although some people say the ER is usually in the direction of the stock pattern. I doubt that's correct, but I haven't done a study on it so I don't really know.
I'm conflicted about whether to take a bullish position or not. So, I decided to get a second opinion.
I called into the Steve Rhodes internet show on TFNN.com. He is highly ranked as a market timer and was doing his show while I was pondering what to do. You can hear our conversation here beginning at minute 37:
https://www.youtube.com/watch?list=PL3E7E63C349749274&v=HPK3l6TjkPU&feature=emb_title
The bottom line was to go ahead but take a small position. So I got a Apr 60 Call for 3.27. I'll see how INTC performs the next couple days. I may get more or sell what I have. If I'm really lucky, it'll hit my target at 63.64 before the close on Thu.
u made a correct decision I am long lots of leaps, if are planning to go heavy go out further in time like sept or jan 21
ReplyDeleteThank you. Keep your eyes open for a general market downturn in the future.
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