We do not have any setups to bring forward today, due to the holidays. With a holiday-shortened trading session like last Friday, the number of stocks that show up on our lists shrink drastically due to low volume.
INTC, Daily: The best one I could find on the admitted skinny list is Intel for a swing trade, in case it can break out of the pennant to the upside.
INTEL, Weekly: On the weekly chart, you can see that this whole move has been a small bull flag. While ADX is extreme for this symbol and timeframe, the upside target remains a test of the November 7 high of $34.51. The extreme ADX reading simply decreases the probability that it will be reached, so buys should both reduce size and tighten up the initial stop loss in response to prevailing conditions.
INTEL, Monthly: We've pointed out how so many of the stocks have already reached the last important swing high on the upside. INTC is one of the few which hasn't so, one more upside target is the January 2002 swing high at $36.78.
PLAN OF ACTION: To enter the potential breakout, we use last Wednesday's swing high of 33.74 as the alert trigger. We would like to use a small pullback (bull flag) above this level on the 15-minute intraday chart to enter. The initial stop loss will be placed just under 33.74, to prevent being trapped in a fake breakout.
03.12.01 09:20 #