DOW THEORY PLAY - INTC CONFIRMS BREAKOUT FROM ACCUMULATION PHASEINTC - CURRENT PRICE : 29.58
Key Technical Highlights:
1. Breakout from Accumulation Phase with Strong Volume
Intel has successfully broken out of a prolonged sideways accumulation zone. The breakout is accompanied by significantly higher-than-average volume , indicating strong buying interest and institutional participation.
2. New 52-Week High Achieved
Price has breached the previous 52-week high, signaling bullish momentum and the potential start of a new price discovery phase. Historically, such breakouts often attract trend-following traders.
3. Golden Cross Formation (look at the red circle)
A Golden Cross has formed for the first time in a long period, where the 50-day EMA has crossed above the 200-day EMA — a classic long-term bullish confirmation. Notably, the last occurrence of this pattern was in July 2023 , making this the first reappearance in over two years, further reinforcing its significance as a potential turning point in market sentiment.
4. Dow Theory Alignment – Public Participation Phase
According to Dow Theory, this marks the second phase of a major uptrend — the Public Participation Phase — where broader market participants begin to enter following early accumulation by smart money. This phase typically sees strong price advances.
ENTRY PRICE : 28.00 - 30.00
FIRST TARGET : 35.00
SECOND TARGET : 42.00
SUPPORT : 25.00 (CUTLOSS below 25.00 on closing basis)
Note : This is related to point no 1. Markets have a tendency to "fall of their own weight." At bottoms, however, markets require a significant increase in buying pressure, reflected in greater volume, to launch a new bull market. A more technical way of looking at this difference is that a market can fall just from inertia. Lack of demand or buying interest on the part of traders is often enough to push a market lower; but a market does not go up on inertia. Prices only rise when demand exceeds supply and buyers are more aggressive than sellers.
