Monday, December 13, 2010

INTC Watch

One of my earnings play holdings, Intel Corp. (INTC), has moved to bear phase on Person's Proprietary Signal (pps) after negative analyst comment. The company announces earnings after the close on Jan. 13.

ppspsarmacd obvh-a trend ma20ma50ma200
INTC $21.57

I made the case for INTC as an earnings play in a posting on Dec. 8. Although in pps bull phase at the time, INTC's on-balance volume was trending was sideways, as it is today, suggesting that the bullishness was not particularly strong.

Today's price decline below last week's support levels buttress the case for weakness made by the on-balance volume.

On the Person's chart, the decline pushed below the first lower pivot level at $21.62.

Person's Table
ppspps openupper pivotlower pivot
INTC $21.57 $22.01 dec13 $22.36 +3.7% $20.80 -3.6%

The price is within the area of a swing high set last July, and so there is some resistance to overcome for further upward movement.

Reversal Levels
  • $22.28, +3.3% (july swing high)
  • $22.07, +2.3% (today's high)
  • $21.57 --- You are here.
  • $21.47, -0.5% (today's low so far)
  • $21.17, -1.9% (20-day moving average)
  • $20.81, -3.5% (late november swing low

Last week's lowest open or close was $21.58. A pullback today above that level would persuade me to wait before acting on the pps signal. Price action always takes precedence over technical signals in my book.

I'll make a decision on whether to exit today sometime in the last 20 minutes of trading.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

  • h-a trend - Heikin-Ashi trend.
  • obv - On-Balance Volume.
  • pps - Person's Proprietary Signal.
  • psar - Parabolic Stop and Reverse
  • ma20 - 20-day moving average
  • ma50 - 50-day moving average
  • ma200 - 200-day moving average
  • macd - Moving Average Convergence-Divergence

About the glance: The colors indicate the state of each signal.
  • Signal Section:
    • pps, psar, macd: green for bull mode, red for bear.
  • Confirmation Section:
    • obv: green for uptrending, red for downtrending.
    • h-a trend: green for uptrending, red for downtrending.
  • Environment Section:
    • ma20, ma50, ma200: green for above the average, red for below the average.

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