Intel (INTC) looks like it’s about to finish Phase II. Here’s the analysis.

I just want to take a quick look at Intel ( $INTC Intel Corporation ) today. A lot of stocks have been moving higher but Intel ( $INTC Intel Corporation ) is one that’s actually already had a heck of a move for this large cap stock; it trades kind of liquid, twenty-seven almost twenty-eight million shares today.

This is a stock that looks like it’s just finishing phase two of a volatility squeeze, or I should say a volatility expansion. First you’ve got the squeeze here, where Bollinger Bands are real tight. The first phase is a breakout above the volatility squeeze, that’s phase one. Then phase two is the pullback to test that level, this is phase two right here. And then finally you’re going to see a bounce off of the test, if it’s going to be a successful test, and looks like this is, the stock is likely to go up to new highs.

So the suggested trade here is to go ahead and be long this stock, but keep a fairly tight stop on this. If your stop is hit, so be it, you could let it drift down to the 50-day moving average in anticipated bounce there, if you want, or you could let this stop be hit, taken out of your stock, watch and see if it bounces off the 50-day moving average, and then buy it there; that’s called trading.