INTC, after finding support just last week near $20.50 now looks to have found it's resistance match near $22. $22 served as resistance several times in 2010 and apparently again now.
The past three days have put in weak performance with two dojis and then today's sell-off, all after almost hitting $22, i.e, a potentially lower high.
In the same sector, I closed my long position in Applied Materials (AMAT) earlier today after it hit my price target at $16 and after spotting this weak development in INTC.
While it's too early for me to short INTC I would say that given today's lousy price action in the broader indices including the transports, this may soon setup as a nice risk/reward short.
Now that I'm neutral in this sector (i.e no position), I can look at INTC and the rest of the semis again with fresh eyes and no hesitancy come Monday.
