Breakout or Breakdown eminent?

20 thg 12, 2020

For the past year Intel has taken a beaten. This started when Intel announce they will not be delivering the new smaller nano meter chip. Subsequently after that earnings report the stock dumped 20 %. Since then the stock has trickled lower with a few up ticks creating lower lows. Over the past few months it has a created a descending triangle, which coincidentally matches the long term trendline. I think the stock is reaching a point where it may break out further, or completely breakdown. Possible plays include a strangle or straddle to capture any big swings. The fundamental side will indicate to take a short position in part due to the strong demand for AMD chips, and with the increasing trend of major companies, such as Microsoft and Apple manufacturing their own processors.

17 thg 4, 2021

Ghi chú

My fundamental analysis was wrong, but assessment of a massive swing was correct. I would look to take some money off the table at this point.