3 Big Charts for Thursday: Intel Corporation (INTC), International Business Machines Corp. (IBM) and GoPro Inc (GPRO)

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Another day of shallow selling continues to indicate that the market is likely to maintain its crawl higher, though we’re sure that the volatility is coming down the road. Regardless, traders in the market need to be eyeing stocks that are accelerating to the upside for the time being.

Our Three Big Stock Charts today focus on stocks that are preparing for a volatility move higher. Right now, Intel Corporation (NASDAQ:INTC), GoPro Inc (NASDAQ:GPRO) and International Business Machines Corp. (NYSE:IBM) are among those companies looking to make moves higher in this boring market.

Intel Corporation (INTC)

160908 INTC Stock Price
Source: Chart courtesy of StockCharts.com

Semiconductor companies have been all the rage with traders as their relative strength has left the market in the dust. The Internet of Things and other hardware overhauls have resulted in stronger fundamentals, translating into strong pricing for the sector.

After a rest, INTC stock has taken-off again, pressing higher towards the $37 level on an increase in average daily volume. This is another example of the migration of cash that is in effect as technology stocks gear-up for a strong fourth quarter.

INTC shares are now trading slightly higher than their upper Bollinger Band, which suggests more upside volatility as traders try to play catch-up with the stock. The oversold reading from its RSI will cause a short-term decline from profit taking at some point, but this will only serve as a buying opportunity, not a change in the trend. For now, Intel’s chart suggests that a $40 price target is appropriate.

GoPro Inc (GPRO)

160908 GPRO Stock Price
Source: Chart courtesy of StockCharts.com

We’ve never been a fan of the GoPro products and fundamentals, but its hard not to like the chart from a traders perspective. GPRO shares shifted into an intermediate-term bull market in early July and have been met with some selling pressure. That said, the stock is in the process of working off an overbought condition that triggered in mid-August.

GoPro shares are drifting lower towards the $13 market, where they will find staunch support from three factors:

  • The round-numbered chart support of $13
  • GRPO stock’s ascending 50-day moving average
  • The shares’ 200-day moving average, which also resides at $13.09

In addition, the 50-day and 200-day are in the process of forming a Golden Cross pattern. These formations are typically a sign that shares are improving their trend and therefore attract the attention of the media and longer-term investors.

The current chart supports the view and outlook that $13 will serve as a good technical entry for GPRO ahead of a hopefully busy holiday season.

International Business Machines Corp. (IBM)

160908 IBM Stock Price
Source: Chart courtesy of StockCharts.com

One of the quietest performers in the technology space has been IBM. The shares are trading 20% higher year-to-date and nobody seems to be paying attention because, well, its IBM. Nonetheless, the technical traders are having a ball with this stock.

IBM is one of only a few Dow Jones Industrial Average components that have spent the majority of 2016 trading above its 50-day moving average, displaying how healthy the trend in IBM’s price has been. Currently, shares are completing a bounce from this strong trendline support level.

More interesting to us is the momentum that IBM shares are building as they approach their upper Bollinger Band, currently at the $163 level. A break above this is going to trigger a volatility swing higher as the moving average convergence divergence and other momentum indicators are suggesting that the increase in volume is building towards a new breakout trend.

The traders should be watching for this breakout, which may lead to the next year-to-date high for IBM stock of around $175.

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/2016/09/3-big-charts-for-thursday-intel-corporation-intc-international-business-machines-corp-ibm-and-gopro-inc-gpro/.

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