INTC is forming an emerging double bottom pattern. On August 6th, the chip maker broke above the neckline of a double bottom formed by the lows on July 12th and July 24th. Before that on August 1st, it broke above the upper limit of a descending triangle making it a failed pattern. In the process, 9-Day RSI also made a divergence. The low reached on July 24th did not accompany a lower RSI reading than that made on July 12th.
Together, these two patterns and the RSI divergence, should propel $INTC to June high of 27.75. The measured target of the DB is 28.05, which is 5% away from the Wednesday close of 26.60.
The stop would be below early August low of 25.60 giving a 1.45 reward to risk ratio.
A break above June high of will complete a Triple Bottom pattern with a measure target near 30.75, a new high for 2012.