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# Intel Chart Art Arc Resistance

### Intel INTC Chart Art Arc Resistance August 5

Courtesy of Corey at Afraid to Trade

I’ve been slipping in some of my behind the scenes “Chart Art” posts that have been received well so I thought I would share another simple Arc and Andrews Pitchfork “advanced technique” analysis on Intel (INTC) which appears to have come into a possible inflection point.  Let’s take a look.

(Click for full-size image)

Without divulging too much of the logic behind this chart, I’ve drawn Fibonacci arcs (standard TradeStation tool which is available on most platforms) off the first swing up off the November lows to the December highs.  I’m using a Fibonacci 2.618 ratio as well as Pi (3.1416) for the arcs (using “pi” is no different than using ‘mystical’ Fibonacci ratios, particularly when dealing with arcs/circles).

I’ve also drawn a standard Andrew’s Pitchfork Tool off the same vector which is drawn to the February lows.

The 3.14 arc worked well in the past (notice how price ‘rode’ this arc through most of 2008 – odds are it should ‘work’ in the future… though there are never guarantees with any method).  Looking back to verify arcs prevents you from drawing random arcs on price charts – the same logic works with advanced Fibonacci grids.

The point of this chart is to show that price rallied up into the 3.14 ratio arc as well as the middle line (50%) of the Andrews Pitchfork tool, and more importantly, a reversal (long upper wick) candle has formed at this confluence level, signaling that it might be an important inflection point to which we should pay attention.

The Andrews Pitchfork took has been confirmed in April and mid-2009 to contain price, which also gives it relative importance (instead of just drawing a random pitchfork).

Main idea – let’s watch to see if the \$20.00 high holds as resistance and the downswing that appears to have formed off this level continues – if so, that would be negative for the stock market.

Remember, there’s no magic in the stock market – this is just one of the advanced methods to uncover potentially hidden resistance areas other traders aren’t seeing.