Intel (INTC) has been getting shellacked by weakness in the semiconductor industry this year, down more than 18% in 2012 as I write. But selling in INTC could be coming to an end -- we're seeing yet another ascending triangle pattern in shares of this chip-making giant.
Intel's been stuck in a downtrend for much of the last six months, and more significantly that downtrend has come without any meaningful basing. By that, I mean that the downtrend has come without any mini-reprieves for buyers and sellers to catch their breath and consider whether Intel should really be trading below $20. In the last two weeks, though, Intel has been consolidating sideways, forming an ascending triangle bottom.
Even though an ascending triangle at the bottom of a downtrend isn't the textbook setup for this pattern, the trading implications are the same. Horizontal resistance at $20 is the buy signal for INTC -- if shares pop above that level, we've got a buy signal. This pattern is a lot smaller than the other two we've seen (volatility has been squeezing for INTC lately), but it looks like enough to end the downtrend in INTC if it does trigger...
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