The Intel Corporation (INTC) is a leader in technology and their stock prices are watched closely as a benchmark for the technology sector.
The stock has enjoyed a pretty steady rally in the last months as the quantitative easing in the United States, and now in Europe did nothing but add value to companies like Intel. The reason for this is the product line that Intel offers. This is highly in line with current social developments and is therefore looking forward to even more demand.
The above is showing the fundamental picture for the stock, but how about the technical one?
This year so far INTC has moved into a 33-35$ range and this tells much about how this 2015 went so far. It is no wonder, as we had some stability and no major events before the ECB (European Central Bank) in late January.
This 2$ range on the INTC price is corrective, however, and while I still like the upside on it, it seems we are looking at a so-called flat pattern.
This flat looks like an irregular one, in the sense that the lows in the previous wave have been taken and the move that followed, the c wave, made a new high.
As with all the equity markets, the INTC price is no different and all depends on the FOMC decisions together with whatever the other major central banks are doing.
In conclusion, taking into account the fundamental and the technical picture as well, together with the whole stock market, I would like to buy call options on the INTC but not from current levels.
The desired striking price should be well below 34.60$ and if this is not reached, it should be ok to look at the structure and eventually buy call options from higher levels. An end of month expiration date should do just fine. It remains to be seen if markets will confirm this scenario.
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Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
