Intel And Cisco: Pullback From Critical Resistance

 | Jul 22, 2012 03:21AM ET

The NASDAQ has churned mightily in an uptrend that is slowly but surely grinding upward from the June lows. Support at the 200DMA held in June and now the technology-laden index is working on holding support at the 50DMA.

The NASDAQ grinds its way upward

Embedded in this churning action are lots of chills and thrills. Two big cap tech stocks that have grabbed closer attention from me during this volatile period are are Intel (INTC) and Cisco (CSCO).

INTC was trading below its 200DMA before reporting earnings on July 17th and looked set to follow-through on the downside. Based on my favorite technical indicator, the percentage of stocks trading above their 40DMAs (T2108), I am also expecting further weakness in the NASDAQ back to 50DMA and/or 200DMA support .

Be careful out there!

Full disclosure: short INTC, long CSCO puts, long JNPR calls

Get The News You Want
Read market moving news with a personalized feed of stocks you care about.
Get The App

Dr. Duru

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes