Breakout Implies Much Higher Intel Stock Prices
INTC Stock: A Retest of the Previous All-Time High Is in Order
I have great news to share regarding Intel Corporation (NASDAQ:INTC) stock. The news is perhaps a tiny bit dated, but the implications are still current. I have been watching the Intel stock chart for many months, waiting for the competition of a wave structure that would signal higher INTC stock prices on the horizon. This wave structure was completed on September 29, and it implies that a move to much higher stock prices is now in development.
The following Intel stock chart illustrates the completed wave that is suggesting that higher stock prices are now in development.
Chart courtesy of StockCharts.com
This Intel stock chart illustrates that the move towards higher stock prices was created using an alternating wave structure known as constructive price action. Constructive price action consists of impulse waves and consolidation waves.
The impulse waves are highlighted in green, and they define the stage in a bullish trend where the investment stages a progressive move towards higher stock prices.
The consolidation waves are highlighted in purple and they define the stage in a bullish trend where the price action is corrective. Corrective price action alleviates any overbought conditions that were created during the preceding impulse wave. This price action sets the stage so a new impulse wave can develop.
These waves are dependent on one another, and in an alternating wave structure, they create the foundation for a sustained move towards higher stock prices.
On September 29, INTC stock completed the consolidation wave pattern by exiting the pattern in an upward direction, which is currently suggesting that an impulse wave is now in development.
This bullish view was already being suggested by the very influential MACD momentum indicator, which is located in the lower panel of the stock chart. The MACD indicator uses the crossing of a signal line in order to determine whether bullish or bearish momentum is influencing the price action on the stock chart.
Bullish momentum is required to stage an advance, and bearish momentum is required to stage a decline. In the context of a bullish trend, these bullish and bearish momentum signals have identified and confirmed whether an impulse wave or consolidation wave was in development.
In May 2016, a bullish MACD cross suggested that bullish momentum was influencing the price action, and it correctly identified that an impulse wave was in development and higher Intel stock prices followed.
In October 2016, a bearish MACD cross suggested that bearish momentum was influencing the price action, and once again, this indicator correctly identified that a consolidation wave was in development and Intel stock failed to stage an advance.
In August of this year, a bullish MACD cross was generated, and it implied that a bullish advance was set to take place. It is why I outlined in a report published on September 28 that INTC stock was only inches away from a bullish breakout.
This breakout is now in full effect and higher INTC stock prices are in development via an impulse wave. The following price chart illustrates the pattern that I am currently using to gauge a potential Intel stock price objective for the current impulse wave that is in development.
Chart courtesy of StockCharts.com
This price chart illustrates the bullish trend that developed in the aftermath of the financial crisis and it is still going strong nine years later.
This bullish trend contains the quintessential characteristic that defines all bullish trends, which is a series of higher highs and higher lows. This bullish trend is effectively captured using an ascending channel. This technical price pattern was created using two upward-sloping trend lines. Price support was established by connecting the higher lows, and resistance was established by connecting the higher highs.
The ascending channel is a simple tool to use, and as long as the INTC stock price continues to oscillate within it, I can only assume that a bull market is in development and that higher stock prices will prevail.
INTC stock has not tested resistance outlined by the ascending channel since November 2014, and the impulse wave that is now in development is the reason I believe that it will be tested once again. Resistance currently resides just north of $50.00, and it coincides with the previous all-time high that was set at the peak of the dot-com bubble in 2000.
Analyst Take:
Intel stock has completed a consolidation pattern that is suggesting that an advancing impulse wave is now in development. This notion of higher stock prices is being reinforced by a number of indications on the INTC stock chart, which leads me to believe that the all-time high at $51.72 is going to be tested.
