Intel Shares Neutral as AMD Gains Ground

Current Intel (NASDAQ:INTC) price action is perhaps one of the best possible examples when looking for an example of consolidated price action.

INTC has been trending across a tightrope defined with an even high of $27 to a low of $26.27.  When talking about shares of a company, Intel in this case obviously, a range difference of 73 cents spread across a span of 16 trading days tends to be particularly intriguing.

Volume dwindles as momentum ceases to exist

Beyond reaching $27 after positive earnings were released on January 19th, 2012 there has been complete indecisiveness of price action.  This in itself is nearly a double-sided sword, perhaps a boon to day traders but INTC otherwise is not in a hurry to do anything notable as volume all but exists at this time.

Rumor-mill water cooler talk

Perhaps one reason why traders are reluctant to adjust their positions in INTC happens to be rumor mill murmurs of a possible takeover of Interdigital.  To provide an even larger cloud surrounding this speculation is that Intel and Interdigital representatives are not talking.  They are neither acknowledging nor denying any potential bids, for now, perhaps never should nothing materialize.

Regarding today’s intraday trading session, INTC gapped south at the market open but toward midday trading has recovered and refilled it.  Directly above current price ($26.67) is the 10-day moving average.  Notable is negative divergence that has formed on MACD which is bearish.

Arch-rival AMD fairs better

Advanced Micro Devices, Inc. (NYSE:AMD) shares have nearly doubled in value since October trading of 2011 and is currently above all major moving averages.  Recently as of yesterday, AMD broke above resistance of the $7.44 price mark which was set on September 15th, 2011.  Today however, with two days in a row of this going on, AMD is having a bear of a time getting above the $7.50 dollar mark.