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Friday, 07 September 2007 |
Intel appears to be an interesting trade idea for this week. Although the trend looks like it will be continuing in the long run, we may be seeing some negative short term movement. Let's take a look.
First off, we can see negative divergence (very steep) with the Percent Volume Oscillator and the Price. This is bearish. Also, once the MFI rises above 50, this usually indicates a bearish reversal. Ultimately, anything above 80 is very bearish. This is a long term chart. We started off with this just to get a feel for the trend direction.
Next to note is the %R indicator is indicating that Intel is currently being overbought (again, keep in mind this is short term trend).
In this chart, the Rate of Change is slowing down. Where the arrow is, notice that the slope recently declined from steep, to not so steep. The momentum is slowing down and this is bearish.
Through this analysis, we can suspect a bearish Intel sometime within this or next week. Keep in mind, this is all short term trends.
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