INTC Trade +4%
Prima Trades bought INTC on October 5th at 51.54 for a number of reasons.
Prices pulled back to value within an overall uptrend. This tells us that we had the momentum on our side while at the same time, we were able to pick prices up cheaper as the stock consolidated back to the two EMAs.
2. We saw a very strong bullish pattern called an inverse bullish divergence. This setup, as shown in the 2-hour chart of INTC above, showed that as prices were making higher lows, our slow stochastics indicator was making lower lows. This is a great example of 'effort vs reward,' a concept explained in The Ultimate Profits Trading Course.
3. Prima Trades also saw an ascending bullish triangle. Prices were making higher lows as INTC was approaching the horizontal line of resistance at around 52 dollars. We saw this as accumulation.
4. The breakout of 52 dollars was confirmation that we were in the correct direction of the stock. Notice how prices came back to test the breakout level, held it and continued higher. This is because previous resistance becomes support, just as previous support becomes resistance. Though prices do not always hold these levels perfectly, they are a fantastic guide on where prices will halt, reverse, or breakout and continue in the direction.