Trading Idea - Is Intel close to Resistance?

Published on Monday, 06 February 2012 05:36 Written by Christian Paolinetti

New York, February 6th (TradersHuddle.com) - Shares of Intel Corporation (NASDAQ:INTC) are trading very close to calculated resistance at $27.00 with the current price action closing at just $26.74 placing the stock near levels that make it difficult to buy.

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, and other computer related components. The largest chipmaker in the world was founded in 1968 and is based in Santa Clara, CA.

Intel's current stock range is defined by current calculated support defined at $23.05 and by the resistance level at $27.00, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Intel, as the stock is well above support, however, as the stock pulls back towards $23.05 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $27.00 then traders will get an opportunity to enter Intel stock by establishing a position as the stock moves to a higher range.