Intel Stock Is Itching to Break Higher (INTC)

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Shares of chip-maker Intel Corporation (INTC) continued their ascent Tuesday on the back of news that the company plans on merging two of its key units. Intel stock has been on an impressive run in recent years, and from a technical perspective it continues to look constructive in all time frames.

beat the bell stock investing adviceSpecifically, in the near-term, Intel stock looks like it’s coiling up for another move higher that could materialize into year’s end.

Tuesday’s news was that INTC is planning on merging its PC and mobile divisions in early 2015 to help expand its microprocessors’ reach into mobile devices. Intel said that as the distinctions between traditional PCs, laptops, smartphones and tablets continue to fade, it makes sense to have all of those devices under the same division.

The new division is planned to be called “Client Computing Group,” and while this seems to make sense from a business perspective, some analysts have already voiced concern that this move could make it more difficult for investors to assess how well the individual parts of the new group are performing.

Intel Stock Charts

Looking at the multiyear weekly chart of INTC, I continue to see a stock that is formidably positioned to move higher.

After the spectacular fall off the summer 2000 highs as the Internet bubble went “pop,” Intel stock essentially fell into a roughly 14-year snooze, much like other “old tech” companies such as Microsoft Corporation (MSFT) and Cisco Systems, Inc. (CSCO). After INTC in March 2009 marginally undercut its 2002 lows, it began marching higher along with the lift in the broader market, scoring one higher low after another. However, it wasn’t until June of this year that the stock scored a major breakout move that took it past the $28 resistance area that stretches back to 2004.

Thanks to the sharp summer rally, Intel stock has bumped into the next major resistance area near the $35-$36 area, and if and when INTC overcomes that area, that could lead to another major rally into the low to mid-$40s.

intel stock chart weekly
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On the daily chart, note that at the mid-October lows, INTC staged a major V-shaped reversal back up along with the broader market. Importantly, the mid-October lows held the up-gap from June 13 and also marked the daily chart with bullish candlesticks that came on a spike in volume.

Over the past two weeks, Intel stock has again consolidated near its September diagonal resistance line, and with Tuesday’s 1.37% rally it scored a marginal breakout move.

intel stock chart daily
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While INTC also will be correlated to the broader market in case of a near-term pullback, the current chart construction shows that Intel looks likely to move toward $37-$38 in coming weeks, possibly into year’s end.

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Download Serge’s trading plan in the Essence of Swing Trading e-book here. As of this writing, he did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/11/intel-stock-intc-charts/.

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