Intel
Corp (NASDAQ: INTC)
Market Call™ for September 9, 1999
Contributed by Mark Seleznov, TrendTrader.com.
The purpose of this Market Call section is to
educate readers in technical analysis patterns and indicators. As with all investment
information, you need to research information and consult your financial advisor before
initiating any strategies that are contained in Market Call.
Also, you must realize that as with all trading strategies,
opinions can change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set
ups, and examples of entry and exit strategies.
Also, you must realize that as with all trading strategies, opinions can
change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set ups, and
examples of entry and exit strategies.
Focus on Exit
Drawing Trendlines in a Support and Resistance Channel
Support and resistance can take many shapes. Sometimes it is a horizontal
line across support and many times it takes the shapes an angled channel.
The drawing of the trendlines is basically the same. You draw them across
the bottom support.
It is a good idea for a trader to be drawing trendlines on their charts to
help them visualize these support and resistance areas.
The chart below does not have trendlines drawn on them. You should print
this chart and draw your own.
Let's draw these trendlines on Intel, (NASDAQ: INTC).
On last Friday, INTC broke out to new highs from the previous high of 86 on
Thursday.
When a stock breaks out, it would be expected that the stock continue to
trade higher. In this case, INTC could not hold the gains from Friday and
are now in danger of taking out the lows of Friday.
This would be a break of a 20 period low.
You can also see from the chart below how that many of the indicators that
we use are also signaling a Sell on INTC.
The MACD actually signaled a Sell yesterday. The Momentum indicator and OBV
are also turning down.
I would exit longs in INTC.
An aggressive trader may want to consider a Short sale here.
I would place a stop on a Short sale at 88 �.
Chart courtesy of
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Call Information
Mark A. Seleznov is a General
Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in
Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on
the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader.
Mark is an author and recognized expert in equity Day Trading. He conducts seminars in
Equity Day Trading and offers his firm traders training and support. If his firm holds any
positions in the public companies he writes about, it will be noted at the bottom of his
article.
Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner
of Trend Trader,
LLC. For information on obtaining Market Calls for your web site,
newspapers, or publication, contact Trend Trader, LLC at 602-948-1146
Disclaimer: Trading in securities may not be suitable for
all individuals. Consult your broker or other professional to determine your suitability.
This is not an offer to buy or sell securities. The advice given above is of a general
nature and should not be taken as a recommendation to buy or sell the referenced security.
Copyright �
1998-2000 Tulips and Bears LLC.
All Rights Reserved. Republication of this material,
including posting to message boards or news groups,
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is strictly prohibited.
Last modified: March 17, 2001
Published By Tulips and Bears
LLC
