Intel Corp. (INTC), the large-cap growth stock and manufacturer of semiconductor chips, entered a bear market in September 2000, when it was more than $75 per share, and bottomed out below $17 early in 2006.
From July 2006 to December 2007, it recovered to more than $28 before succumbing to selling that eventually drove it to $12.
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On March 13, at about $13, I said, "This traditional technology growth stock appears to have formed a solid base at $12, but to break from the base, it must close above the downtrend and Thursday's (March 12) high of $14.60. If it breaks out, the initial target is $18, but the trend will have changed to intermediate up, which could attract more long-term buying."
On June 10, at $16.45, I wrote, "Intel has not only driven above $14.60, but it also established a base above its 200-day moving average, flashed a Collins-Bollinger Reversal (CBR) buy signal, and completed a golden cross—all signs of a long-term change in trend. Our trading target is revised upward to $22."
And on July 6, I said, "The target is still $22, but in light of the current overall market conditions, I'd wait for a pullback below $16 before taking or adding to positions in Intel."
Well, we got our pullback, and this week, Intel beat earnings forecasts. Buy Intel now with a target of $22.
By Sam Collins of OptionsZone.com
