Back in January, in addition to noting the historic options expiration day, I also mused a little on the massive volume in Intel and, due to the fact that the price was not holding even after the drop, I said the following:
Because of that action, I’m inclined to think INTC is being abandoned. If so, that would probably mean months of sideways movement, at the least.
Now, a little over three months later, we’ve gotten a little tingle on the far right edge of the chart:
As usual, I did some ad hoc calculating, this time on the volume INTC has traded in each $1 range since the Big Drop. Volume At Price, as they say. (I read years ago how a similar calculation was useful in the futures market, and started messing with it on equities out of curiosity.)
Here are the tallies of approximate volume since the gap in January:
1.3 billion shares traded between $21 and $22.
1.8 billion shares traded between $20 and $21.
2.8 billion shares traded between $19 and $20.
100 million shares traded between $18 and $19.
I like to think of these ranges as fluids of different densities. Picture a beaker with those different-colored layers of liquid in it. You’ll notice in this case that the $19-20 layer is pretty significant. Not so easy to pass through. Support. Resistance. You get the idea.
Now Intel has poked its head up above 20 again on some nice heavy volume. Has it found a bottom? A little early to say. Need more chart. But it’s certainly gonna be one I’m checking on daily to see if it behaves well around 20. If it does, it could be a nice swing trade candidate in the very near future.