Intel: Technical Targets
12/31/2004 12:00 am EST
While she also looks at fundamental factors, Yola Edwards is first and foremost a technician, and her Top Pick for 2005 is based in large part on technical considerations. Here, she assesses the short and long-term technical outlook for chipmaker, Intel.
"From a technical perspective, Intel (INTC NASDAQ) looks like an extremely attractive candidate going into 2005. A short-term chart reveals that Intel has traced out a saucer bottom and handle, which has turned into a symmetrical triangle. With the share price within striking distance of the 200-day MA, the stock appears poised to rally. A close above $25 would set the stage for the stock to jump to its technical pattern’s near-term target of about $30.36 over the ensuing three months, for appreciation of 30%.
"The underlying fundamental picture for semiconductor companies has strengthened, and we wouldn’t be surprised if Intel’s share price vaults even higher. The longer-term chart appears even more enticing and fundamentals support a more bullish longer-term stance. As a longer-term inverse head-and-shoulders pattern also appears to be unfolding the stock could vault to its longer-term pattern’s technical target measurement of $39 over the next 12 months for a possible return on investment of about 66% from current prices."