INTC breaks back above 200-day moving average
Intel Corporation (INTC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
INTC ended Thursday at 55.54 gaining $4.28 (8.35%) on low volume, strongly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 53.79, the stock confirmed its breakout through the previous session high after trading up to $2.08 above it intraday.
Daily Candlestick Chart (INTC as at Mar 26, 2020):
Thursday's trading range has been $4.21 (8.14%), that's slightly above the last trading month's daily average range of $4.04. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for INTC.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 200-day moving average at 54.23 for the first time since March 13th. When this moving average was crossed above the last time on March 13th, INTC actually lost -18.04% on the following trading day. Unable to break through the key technical resistance level at 55.75 (R1), Intel closed below it after spiking up to 55.87 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 59.02, upside momentum might speed up should INTC mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Intel. Out of 38 times, INTC closed higher 71.05% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 71.05% with an average market move of 1.85%.