Intel Corp. (INTC) — This large-cap growth stock and manufacturer of semiconductor chips entered a bear market in September 2000, when it was more than $75 per share, and bottomed out below $17 early in 2006.
From July 2006 to December 2007, it recovered to more than $28 before succumbing to selling that eventually drove it to $12.
On March 13, at about $13, I said, “This traditional technology growth stock appears to have formed a solid base at $12, but to break from the base it must close above the downtrend and Thursday’s [March 12] high of $14.60. If it breaks out, the initial target is $18 but the trend will have changed to intermediate up, which could attract more long-term buying.”
On June 10, at $16.45, I wrote, “Intel has not only driven above $14.60, but it also established a base above its 200-day moving average, flashed a Collins-Bollinger Reversal (CBR) buy signal, and completed a golden cross — all signs of a long-term change in trend. Our trading target is revised upward to $22.”
And on July 6, I said, “The target is still $22, but in light of the current overall market conditions, I’d wait for a pullback to below $16 before taking or adding to positions in Intel.”
Well, we got our pullback, and this week Intel beat earnings forecasts. Buy Intel now with a target of $22.
Get Sam Collins’ Daily Trader’s Alert e-mailed to you each morning before the opening bell absolutely FREE!
In addition to getting instant access to his Trade of the Day, you’ll also receive his Daily Market Outlook in the same e-mail so you can start your day off right by positioning yourself for profits!
Sign up today for Sam’s FREE Daily Trader’s Alert!
Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks.
