Intel - A Technical Stanpoint (NASDAQ:INTC)

Let’s breakdown Intel Corporation (NASDAQ:INTC) from a technical analysis perspective, after the company announced a settlement yesterday with rival AMD in which Intel will pay AMD $1.25 billion to settle disputes related to antitrust and patent infringement.  There are both bullish and bearish items to consider, but the bulls seem to be winning the battle short term with hopes to break it open long term.

From a bullish standpoint, there is near-term support at both a horizontal trend line dating back to September ’08, and an uptrend line dating back to March of this year.  The horizontal trend line is at $18.50 and the uptrend line is currently at around $18.60.  Additionally, the 50dma is offering support at $19.62, and the 200dma, currently at $16.96, has been in an uptrend since July.

On the bearish side, INTC is battling a downtrend line that dates back to January of ’04, as well as what could loosely be interpreted as a broadening-top formation that has been in progress since the end of August.  A broadening-top (aka megaphone) formation is a bearish pattern consisting of higher-highs and lower-lows.  Additionally, there is a breakaway gap from July 15 that could get filled on any weakness which would bring the stock down around the $16.90 level.  Gaps in stock charts very often get filled at some point in time, and can be good support and resistance indicators.

For those bullish on INTC, look for support at the uptrend line accompanied by solid volume.  If support holds, look for an upside target coinciding with the longer-term downtrend line mentioned earlier, which is currently ~$25.00
For those bearish, look for a break of the uptrend line.  If the uptrend line is broken, INTC could head towards the 200DMA which would also coincide with the gap mentioned earlier.