Ask Tony
Monday, March 12^th, 2007

by Tony Golan
Chief Technical Analyst
StockProfit.com™

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Tony answers: Thomas, the short answer is I don't see any point in buying INTC if it trades at 19 or lower on Monday.

You didn't specify what timeframe you're looking at, so net time please specify your time horizon (short, intermediate-term or long-term).

However, take a look at the long-term INTC chart above. INTC is in a long-term down-trend since at least the middle of 2005, so almost two years now of making lower highs and lower lows below the 200-day moving average. It then bottomed out last June and rebounded, going above the 200-day moving average in late September. INTC even continued to make higher highs and higher lows above the 200-day moving average for the next 6 weeks or so, but RSD (the green histogram), my Relative Strength Differential indicator, never went above 25% and therefore it was never strong enough to be considered as a buy.

Since November, INTC has been making lower highs and lower lows, meaning it is in a down-trend intermediate-term trend. It then broke below the November low, then the December low, and now it has broken below the 200-day moving average in a pretty steep short-term down-trend.

INTC is in a down-trend on all timeframes, Thomas. Stay away from it right now.

-Tony

Tony Golan
Chief Technical Analyst

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