Intel Broke Resistance

Published on Monday, 06 August 2012 05:36 Written by TradersHuddle Wire

New York, August 6th (TradersHuddle.com) - Shares of Intel Corporation (NASDAQ:INTC) closed the session at $26.23 just above calculated resistance at $26.20. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $24.79 and resistance at $26.20. Given that this range was broken, traders will be closely monitoring Intel's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Intel is still near the broken resistance level, traders will be focusing on the $26.20 level to see if the stock holds the breakout without rolling over.