Intel Charts: Upcoming Opportunity

By L.A. Little of tatoday.com, author of Trade Like the Little Guy.

Upgrades and downgrades! Double bookings! What is all this fundamentalist chatter? One day the analysts tell us the fundamentals are sound, while the next they're not. For most folks, it's like a deer caught in the headlights, unable to make a move.

Bank of America/Merrill Lynch added more confusion Thursday by downgrading both Intel (INTC Quote) and Texas Instruments(TXN Quote). That sent the semiconductor group into a tailspin. Although I can't make sense of these analysts and their reasoning, I can look at a chart and see what it's telling me. After all, the chart is a reflection of all those fundamentals. So, when I take a look INTC, what I see is an upcoming opportunity. Here's why. Let's start with the short-term time frame which reflects the confusion of which I speak.

On this time frame, what you see is gaps up and down and prices pretty much all over the map. The highlight of this chart, though, is the high-volume high sitting at the top of the chart. High-volume highs have a way of acting like a magnet on future prices. At some point, that high will get tested. So, from a little longer-term perspective, that becomes your target, or your minimum target, actually.