Intel Corporation (INTC) recently almost completed a head-and-shoulders reversal pattern. A head-and-shoulder pattern is followed by a change in direction of the stock price. INTC is still heading north? Why? It may be a complex head-and-shoulders

The recent upside action in INTC has been on low volume. Volume is the second most important factor in technical analysis. If INTC breaks and holds above 24.50, there is a good chance it could see some more buying pressure, but the volume indicates otherwise.

Volume is a tricky thing these days. All the major EFT's have slowed down, in terms of volume, this last month. With the market slowing down, one would naturally think to see a slow down in volume in INTC as well. So how do we interpret this pattern in INTC? We wait and see. This little upside spike could just be part of a complex head and shoulders pattern, or a sign that INTC is going higher.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.