INTC - Bullish CUP (and handle?)INTC first broke out of it's base neckline @30.50 (as well as it's 200 day Moving Average) on 29 March. However, its movement has been very erratic since.
Last Friday's post earning's strong gap up changes the picture considerably IMO as it has now completed a "CUP" formation (a bullish pattern with higher odds of success).
2 possible scenario could happen next:
1. it breaks out of the CUP with hardly any pullback (ie no "handle" being formed) or,
2. it begins to from a "handle", which is likely to be a shallow 38.2% fib retracement towards 34.90 where it fills the recent gap. This level is just arbitrary but in any case, a pullback would provide a less risky opportunity to long (or add to) the stock with a stop just slightly below 33 (61.8% fib retracement).
When the stock eventually breaks out of $39, then the next target @ $43 is in sight, although expect it to move in a zig zag fashion up.
p/s targets are for shorter term traders, who may prefer to take profits and look for opportunity again during the next pullback.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
