Dow component Intel Corporation has posted dramatic returns so far in 2017, with the stock gaining more than 23% while lifting to a 17-year high, despite continued contraction in personal computing revenues. The stock has been working off an extremely overbought technical reading since early November and could bottom out in coming sessions, bouncing strongly to end the year at or near new highs.
The stock has finally cleared a multi-year base in the upper $30s, setting the stage for continued upside into 2018. New support at $38 should offer the best price to take longer-term exposure, but it is unlikely to reach that level in the current pullback, which has drawn the outline of a bull flag pattern. For now at least, potential downside should be limited to the 50-day exponential moving average (EMA), which is rising just two points below Friday’s close at $44.68. (See also: Why Intel and Broadcom Are Still Cheap.)
Intel shares have been pulling back in a bull flag pattern for six weeks and could bounce strongly, reaching new highs prior to year end. …read more
Read more here: Intel Stock Well Positioned for Year-End Rally