Intel gearing up for a breakout

 Intel gearing up for a breakout

Intel gearing up for a breakout.

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Negativity rampaged throughout the markets last week as strong selloffs in the Nasdaq, Dow and S&P indicated that there’s a risk-off approach being taken by investors following Powell’s hawkish statements with regards to tapering that is more than likely set to be announced during next month’s FOMC meeting.

Brent Crude lead the pack as it neared the $80 mark after finally breaking it before the US Open this morning trading at $80.50. The precious metals continue to slide lower following a strong US Dollar with Gold making a weekly low of $1721.

The week is filled with high impact news events to look out for with the major focus being on the Unemployment figures on Friday and the Bank of New Zealand set to make its Rate Statements on Wednesday as a 0.25% interest rate hike is expected.

Friday’s movers:

  • Guardant Health (GH) was down 14% as the company plans to acquire NeoGenomics
  • Moderna (MRNA) was down 11.37% as the Public Health Agency of Canada released a statement that higher heart inflammations are experienced following the administration of the COVID-19 vaccine.
  • Merch & Co (MRK) was up 8.37% as the company announced promising data with regards to a COVID-19 pill being developed.
  • Delta Air Lines (DAL) was up 6.5% travel stocks rallied as Merch announced their COVID-19 pill that is in development.
  • Virgin Galactic (SPCE) was down 5.81%

Stocks to watch:

Intel Corporation (INTC)

Intel continues to show growth by Earnings and Revenue exceeding expectations during the previous quarterly report, with the next quarterly earnings due on the 21st of October we’re due to see some substantial movement to the upside if the chip manufacturer continues to exceed expectations. Technically the chart is still in a downtrend as it trades below the 200 and 50 moving averages in the leadup to earnings the latter part of this month, the failure to continue the downward push with higher lows could be a possible indication that a break of the falling trendline might be on the horizon. There could still be a substantial upside to its March highs of this year given the quarterly earnings beat the forecasted Earnings and revenue.

Zander van der Merwe

Zander van der Merwe is a Commerce graduate with majors in Economics from the University of Pretoria with an intense passion for the financial markets. My general focus is to look at the markets holistically combining strong Fundamental views with the incorporation of Technical analysis in the sphere of the United States stock markets, indices, commodities as well as the new kid on the block: cryptocurrencies. I incorporate this very strongly with my value add to the TD Markets team to ensure that clients are being given the transparent and in-depth view of the markets that is imperative to a career in trading. I am also a writer and market analyst at TD markets

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