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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (149795)	11/27/2001 8:49:27 AM
From: Road Walker	Respond to of 186894

Intel: Back In The Chips? By Ben Berentson Some technicians have recently been predicting that semiconductor stocks will soon turn around. John Bollinger likes thechart of chipmaker Advanced Micro Devices. Now Russ LiPuma, aka Mystifier on the popular technical-analysis community Web site Clearstation.com, thinks Intel is going to make a comeback. Intel , the world's number one chipmaker, is trading at around $30, down more than 60% from its September 2000 highs. LiPuma, whose methods are explained on hisStockWerld.comsite, uses something called Directional Movement Index to find "buy" signals. The DMI is a trend indicator and is composed of three lines, an up line (blue), a down line (red) and the Average Directional line (black). The ADX line measures the strength of the trend--the higher the line, the stronger the trend--while the relationship between the other two lines indicates the direction of the trend. When the up line is above the down line, it indicates an up trend. Line crosses provide "buy" and "sell" signals. In September 2000, Intel's down line crossed above the up line and the ADX line accelerated upward, indicating a major bearish trend. Intel's stock price fell sharply after that date. Now, with Intel's price at $30, the up line has moved above the down line. "Once the ADX line crosses above the down line, which it should do soon, the up trend will be confirmed," LiPuma says. "I expect it to get back up into the mid-50s. That's the next area ofresistance, so take your profits there." Send comments and questions toinvestingnewsletters@forbes.net. More From The Chart Room Related Links at Forbes.com