Intel Corp. declined from $27.99 to $12.06 (A-B) and then settled in a large wedge formation made up of lower highs and higher lows (dashed lines). Intel rallied above this pattern recently to a high of $27.50 (C), which signalled a breakout and the start of a new up-leg. The current pullback (D) should provide a good entry point, and only a sustained decline below about $24.50 would reverse the current long-term upside potential. Point & Figure measurements provide targets of $34 and $39. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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