Intel Corporation: Embrace the Tech Stock Rally With INTC Stock

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Large-cap tech stocks have donned the leadership role and are reticent to give up the limelight. And that’s a good thing for those hoping the Nasdaq will close out the year on a high note.

Traders looking to get in on the action have a handful of good looking candidates ripe for the picking. That’s one of the silver linings of the recent market chop-fest. Stocks like Intel Corporation (INTC) have had an opportunity to digest gains while building a base for the next surge.

Among the usual suspects in the tech crowd, Intel stock has behaved quite nicely this month. Particularly relative to the sharp downturn in stocks at large last week. A quick glance at INTC reveals a classic looking cup and handle pattern on the cusp of completion.

INTC stock
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Source: OptionsAnalytix

The uptrend that has taken root in Intel stock has been accompanied by quite the bullish volume patterns. Since October the landscape has been littered with accumulation days.

These high-volume up-days confirm big buyers have been snatching up shares of Intel stock with aggression.

Watch for a break above $35.50 in Intel stock price in the coming days. Those looking to jump ship at the first sign of trouble could use a breach of the lower end of the handle ($33.90) as their signal.

To position yourself for profits during INTC’s eventual retest of its 2014 highs at $38, consider buying call vertical spreads. Buy the March 35/38 call spread for $1.16. By using March options you have a few months for Intel stock to make the required move to the $38 level.

The max loss is limited to the initial $1.16 debit and will be forfeited if INTC stock sits below $35 at expiration. The max gain is limited to the distance between strikes minus the initial debit, or $1.84, and will be captured if Intel can rally above $38 by expiration.

As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/12/intc-intel-stock-tech-rally/.

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