Last week, Intel looked like it was bottoming in the short-term. A break above $20 was the buy signal -- and we saw that price get taken out definitively in yesterday's trading session. Now, the setup is more significant because of the falling wedge that's also triggering on the move. The falling wedge is formed by converging downtrend lines, and despite its appearance, it's a bullish pattern. In fact, one study puts the pattern's ability to spot a reversal at more than 90%.
Obviously, this isn't a setup that you want to get in on early, since a stock can continue to fall within the wedge while investors wait for a breakout. But since Intel's breakout already happened yesterday, buyers have a good chance at a low-risk entry today. If you decide to be a buyer here, just make sure you keep a tight stop.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV