Intel - Double bottom at previous high

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Intel             surged on Friday due to talks about taking over Altera Corp             . The daily chart is overbought so I would wait for a correction.

The weekly chart shows a double bottom at the previous high. Force Index is going back into the channel and the impulse is blue. Not too much to say about this chart, it is simply bullish!
I am sorry for this stupid question, but isn't that rather bearish divergence?
It is not a stupid question :))
If you will search the web enough, you will find two conceptions : divergences are the holy grail of technical analysis / most divergences are fake. The problem with divergences is that people do not know to trade/interpret them. No one asks when is the divergence over, so when a 3 year old uptrend doesn't get turned around by a bearish divergence, they consider it fake. That is not true. Divergences mainly call for corrections in trends, NOT trend reversals. This is what most analysts do not understand.

Now in this particular case, the bearish divergence called for a 8$ drop in INTC, that is more than 20%. Does that sound fake? Absolutely not. Does it mean that an uptrend is over? Absolutely not. An uptrend is over when a downtrend starts. There is no downtrend here, and my system tells me that it is time to buy and the divergence has been cleared. I may get it wrong now, but with more trades, I do get it right more often than not.

I suggest doing some analysis on your own by just looking at a chart, not what technical analysis gurus (that have been calling for stock market crashes since the first divergence on the DOW) say about it.
jirakst vlad.adrian
Thank you for your reply! I have done my view, can be seen here:
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