3 Big Stock Charts for Tuesday: Intel Corporation (INTC), Twitter Inc (TWTR) and Darden Restaurants, Inc. (DRI)

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The market’s rally has widened the divide between some stocks, presenting some opportunities to start considering taking profits as well as a few opportunities to buy stocks that still haven’t participated.

As of today, two technology stocks that look ready to take a rest are Twitter Inc (NYSE:TWTR) and Intel Corporation (NASDAQ:INTC) while Darden Restaurants, Inc. (NYSE:DRI) looks like a technical buy.

Twitter Inc (TWTR)

3 Big Stock Charts for Tuesday: Intel Corporation (INTC), Twitter Inc (TWTR) and Darden Restaurants, Inc. (DRI)
Source: Chart courtesy of StockCharts.com

Shares of TWTR have spent the last month trending higher as rumors that the company could be an acquisition target have provided enough reason for traders to take a shot on this beaten-down name. The move from $14 to $18 (28%) is impressive, but it has also taken the stock to an overbought reading of its RSI indicator.

In addition to a short-term overbought condition, TWTR shares are running into potential chart resistance as they test the $18 level. This mark caused issues for Twitter in April and actually acted as support in January. When a price acts both as support and resistance in the recent past, it is more likely to continue the same behavior.

Volume on Twitter has been relatively light, so it is apparent that the traders are waiting to see some confirmation that the move back below $18 is going to stick.

In other words, another day or two of weakness from the tech company will probably result in technical selling.

Intel Corporation (INTC)

3 Big Stock Charts for Tuesday: Intel Corporation (INTC), Twitter Inc (TWTR) and Darden Restaurants, Inc. (DRI)
Source: Chart courtesy of StockCharts.com

After lagging the market for months, the semiconductor sector is now playing catch-up. The short-term performance has helped Intel rally its way back to a similar situation as Twitter. The moon shot from $30 to $34 over the last two weeks has resulted in an overbought condition.

At that time, the stock had traded from $31 to $35 in a short period of time, similar to today. The RSI readings were almost exactly the same as technical traders came into the market to lock in short-term gains on the fast-and-furious move.

Today, you should be watching for the stock to potentially touch the $35 price point as a good signal that it could be time to lock in some profits or at least add a trailing stop to the stock as a reversal from this price will likely target the $32 level.

Darden Restaurants, Inc. (DRI)

3 Big Stock Charts for Tuesday: Intel Corporation (INTC), Twitter Inc (TWTR) and Darden Restaurants, Inc. (DRI)
Source: Chart courtesy of StockCharts.com

One stock that has spent the last year outperforming the market but has been doing nothing lately is Darden Restaurants. Over the last few weeks, shares of DRI have been consolidating at the $62 level on relatively heavy volume as it appears that larger traders are beginning to take some positions.

The reason for some bets coming in on the stock may have to do with the fact that it has been sitting on its 200-day trendline at $62, a technical indicator that has afforded support to the shares in the past.

The pullback to this trendline was due to an earnings report that was not as favorable as investors would have liked.

The last time that Darden shares spent time on this trendline as support was in May, just ahead of a run from $62 to $68. In addition to this support, Darden is trading near technically oversold levels, indicating that the selling pressure has likely run its course and fewer buyers are going to be needed to spark the next rally.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/intel-corporation-intc-twitter-inc-twtr-and-darden-restaurants-inc-dri-3-big-stock-charts-for-tuesday/.

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