INTC (Intel Corp) offers an objective short entry here on the backtest of the neckline of this head & shoulders topping pattern. This H&S pattern on INTC was discussed in the July 23rd semiconductor sector video along with SMH (Semiconductor ETF). Since that video, SMH went on to break down below its primary uptrend line and is currently backtesting it from below just as INTC is backtesting the neckline from below.
INTC daily July 29th
The daily chart below shows the recent breakdown & current backtest of the primary uptrend line in SMH while as this 10-year weekly chart shows, SMH is currently poised to print the first weekly close below the 2008-2015 bull market uptrend line unless the semis can rally from here & into the close tomorrow. As discussed in the recent video, a confirmed breakdown of the semiconductor sector would greatly increase the odds of the active semiconductor short trades, INTC & AVGO, reaching their profit target(s).
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- SMH daily July 29th
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- SMH weekly July 29th
