Intel Stock Chart Breakout Underwhelms

Intel (INTC) was reviewed earlier this month, where I wrote, "INTC is poised for an upside breakout. Aggressive traders could go long INTC at current levels risking below $45 looking for gains to the mid-$60's." I wrote about INTC breaking out of a broadening pattern. That could still happen but I want to also suggest a Plan B alternative.

In this daily bar chart of INTC, below, we can see a mixed picture for our favorite indicators. Prices are above the rising 50-day and 200-day moving averages. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish, but the On-Balance-Volume (OBV) line has been lagging the price action for the past six weeks. Ideally the breakout above $50 this month should have seen a real expansion in volume, but that did not happen. Many market observers do not give enough attention to volume and concentrate more on price.

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