INTC Breakout: A Textbook Relative Strength Winner

 Wow, what a week it’s been for the market, and especially for INTC. I’m still shaking my head a bit, not because I’m surprised, but because it’s always satisfying to see a setup play out exactly the way you anticipated. About a week ago, I wrote about how INTC was showing clear signs of strength. What really stood out to me wasn’t just the price action, it was the relative strength. The stock wasn’t just moving up; it was outperforming its peers and the broader market. That’s always one of my biggest tells that something meaningful could be unfolding.

If you look back at the chart I shared, the arrow marks the exact spot where I alerted readers right here on this site that INTC looked ready to move higher. At the time, it wasn’t about predicting the future, it was about recognizing a high probability setup. The stock had been acting well, holding key levels, and quietly building momentum while others were still chopping around and moving lower. That kind of behavior tends to precede strong moves, and that’s exactly what we got.

Since that post, INTC has absolutely exploded to the upside, hitting a high today of 63.39. Moves like that don’t happen by accident. They’re usually the result of accumulation, improving sentiment, and underlying strength that shows up in the relative performance before it becomes obvious to everyone else. That’s why I focus so heavily on relative strength, it gives me an edge in spotting leaders early.

Another important piece of the puzzle was the broader semiconductor space. I pointed out at the time that other semis were also starting to show strength, and that added even more conviction to the trade. When you see a stock leading within a strong group, it significantly increases the odds that the move has legs. It’s not just a one-off story, it’s part of a bigger trend. That kind of confirmation is something I always look for before committing capital.

To me, this trade was a textbook setup, something straight out of my playbook. It had all the elements I look for: relative strength, sector confirmation, and clean technical structure. Those are the kinds of trades I try to focus on consistently, because over time, that’s where the real edge comes from.

If you’re interested in how I use relative strength in my own trading, I go into much more detail in my book, Master The Market with Relative Strength. And if you want to revisit the original analysis from last week on INTC, feel free to go back and check out that post. It’s always valuable to study these setups in real time and see how they evolve.

CURLF Showing Relative Strength at a Key Support Level

 Above is a daily chart of CURLF, and in the lower pane I’m using a ratio line of CURLF versus MSOS to measure relative strength within the cannabis space. Right away, the first thing that stands out to me is the strong support level that CURLF has just bounced from, and I think that level is the key to the entire setup.

Back in November, CURLF found support just under the $2 area, and now we’re seeing buyers step back into the stock at that same level once again. I always pay close attention when a stock reacts positively at a prior support zone because it tells me that the market still recognizes that area as important. When a level has already proven itself in the past and then works again later, it tends to carry more weight in my analysis.

What I like here is not just the bounce itself, but the way the bounce is happening. We’re now seeing three above average sized green candles come off that support area, and that’s not something I ignore. Strong candles like that often tell me buyers are stepping in with conviction rather than just creating a weak dead cat bounce. To me, that kind of price action suggests demand is returning in a meaningful way.

The lower pane is also giving me a very important clue. As CURLF was retesting support, the ratio line versus MSOS was actually showing bullish divergence. In other words, while price was coming back down toward that support level, the stock was quietly beginning to outperform the broader cannabis ETF. That’s something I always find encouraging because it can often be an early signal that the stock is beginning to strengthen beneath the surface before the price chart fully reflects it.

What makes this even more interesting is that the ratio line now looks like it’s on the verge of breaking out of its consolidation before price does. That’s exactly the kind of pattern I like to watch for because relative strength often acts as a leading indicator. When I see the ratio line improving ahead of a clear price breakout, it tells me that buyers may already be positioning in anticipation of a larger move.

Of course, I still want to see the cannabis sector continue to improve overall. If MSOS can keep moving higher and the group starts to gain momentum, I think CURLF has a very good chance of emerging as one of the stronger names in the space. It’s already showing the kind of relative behavior I want to see in a potential leader.

For that reason, CURLF is definitely one I think is worth watching here. It’s sitting on proven support, showing strong buying pressure off the lows, and beginning to outperform its sector. In my opinion, that combination gives it the potential to become one of the leaders if the cannabis trade continues to develop.

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INTC Starting to Act Like a Leader

 

Above is a daily chart of INTC, and in the lower pane I’m using SPY for comparison. One of the things I’m always looking for is relative strength, especially during periods when the broader market is under pressure, and I think INTC has been showing a very clear example of that.

If you look closely from point A to point B, the contrast between INTC and SPY really stands out. SPY went on to make a much lower low at point B, which tells you the overall market was still getting hit pretty hard. But while the market was falling apart, INTC held up much better and actually made a considerably higher low at point B. To me, that is exactly the kind of price action that deserves attention.

This is one of the classic signs of relative strength. When the market gets hammered but a stock refuses to break down with it, that usually means there is underlying demand supporting the name. In other words, buyers are stepping in sooner and with more confidence than they are in the broader market. That doesn’t always lead to an immediate breakout, but it often gives me an early clue about where money may be quietly rotating.

What I like about this setup is that the relative strength isn’t just subtle, it’s pretty obvious on the chart. INTC didn’t just survive the market weakness; it absorbed it and then began to stabilize in a constructive way. When I see that kind of action, I start thinking less about what the market is doing in the moment and more about what the stock may do once market pressure starts to ease.

Another bullish development is that INTC has now broken out above its trendline. That alone gets my attention, but what really adds conviction for me is the way it happened. The stock pushed through that area with three large consecutive green candles, which is not the kind of action I like to ignore. Strong candles in succession often signal urgency from buyers, and when they appear after a period of relative strength, I view that as an important shift in character.

I’m also encouraged by the fact that INTC is not acting strong in isolation. Several other semiconductor names have been showing relative strength as well, and that kind of group behavior matters. When I see multiple stocks in the same sector starting to outperform together, it often suggests that institutional money is moving into that space. Sector confirmation can go a long way in supporting an individual setup.

At this point, I think INTC is in a favorable position technically. It has held up better than the broader market, it has broken trendline resistance with authority, and it’s doing so alongside strength in other semiconductors. For those reasons, I expect higher prices in the weeks ahead and will be watching to see if this momentum continues to build.

NFLX Showing Relative Strength Ahead of a Potential Breakout

 

Over the past several weeks, NFLX has really caught my attention, and I think it’s setting up in a way that traders should be paying close attention to. On the daily chart above, I’m looking at a stock that has been acting far better than much of the broader market, and that kind of behavior is always worth noting. In the lower pane, I’m using a ratio line of NFLX versus SPY, and that comparison is telling an important story.

Back in late February, NFLX had a powerful gap higher, and since then it has been working through a consolidation phase. That kind of price action is often constructive because rather than immediately giving back the move, the stock has been digesting gains in an orderly fashion. To me, that suggests institutions may still be involved and that the stock is being accumulated rather than distributed. When a stock gaps up and then holds the bulk of that move, I always see that as something potentially bullish.

What stands out even more is what happened two weeks ago. NFLX pulled back and tested the beginning of that gap area, which is a spot I would expect to matter technically. Instead of falling apart, buyers stepped in and defended the level. That support tells me demand is still present, and it reinforces the idea that the gap wasn’t just a one day event. It now looks more like a meaningful reference point on the chart.

The real reason I’m interested here, though, is the relative strength. While the overall market has had its ups and downs (mostly down), NFLX has continued to show leadership. In the bottom pane, the ratio line is doing something I pay very close attention to: it has already broken out to a new swing high ahead of price itself. That’s a pattern I respect because the ratio line often acts like a leading indicator. When relative strength improves before price actually clears resistance, it can be an early clue that a breakout may be coming.

In my experience, when I see a stock outperforming quietly beneath the surface while price is still consolidating, it often means the stock is preparing for its next leg higher. That doesn’t guarantee anything, of course, but it definitely puts the name on my radar.

From here, I’ll be watching closely for a breakout over the $100.19 high. That level is the trigger that would tell me price is finally ready to confirm what the ratio line has already been hinting at. If NFLX can clear that area with conviction, I think there’s a reasonable path toward the $110 zone. As long as relative strength continues to lead, I’ll stay constructive on the setup.

MSOS Setting Up at Major Support as MACD Turns Bullish

This past week was very interesting for the cannabis stocks, and I want to point out a few things that really stood out to me on the chart. Above is a daily chart of MSOS, and in the lower pane is the MACD indicator. When I look at a setup like this, I’m not just looking for random movement or trying to force a bullish opinion. I want to see whether price is reacting at a meaningful level and whether momentum is beginning to confirm that reaction. Right now, I think that’s exactly what may be taking place.

The first thing that immediately jumps out to me is the major support and resistance zone between $3.00 and $3.35. This is not just some arbitrary line drawn on the chart. This is an area where the market has repeatedly shown us that buyers and sellers care. If you look back, you can see that this zone has acted as both support and resistance numerous times in the past. Every time price has entered this area, the market has responded with a significant move. That is the type of level I pay very close attention to because repeated reactions at the same zone usually mean there is real supply and demand there.

When a level is tested many times and the market continues to react from it, I take notice. That tells me the level has memory. It tells me traders are seeing the same thing, and that’s important because the more eyes on a level, the more meaningful it often becomes. Right now, MSOS appears to be bouncing from that exact support zone, and that immediately puts it on my radar.

The second thing I want to point out is what is happening in the lower pane with the MACD. At point D, the MACD has just now crossed to the upside, giving what many traders would consider a bullish buy signal. On its own, that doesn’t mean much to me. I’ve said many times that I do not rely on indicators by themselves. In fact, a MACD cross in the middle of nowhere is something I usually ignore. But when momentum starts to turn at a major level of support, that gets my attention.

What makes this especially interesting is that we’ve seen this exact behavior before. Every time the MACD was below the zero line and then gave a bullish crossover to the upside, the market rallied significantly afterward. You can see this at points A, B, and C, and now once again at point D. That type of repetition is important because it shows a pattern that has been respected multiple times before.

Take a closer look at point B. The MACD gave a bullish signal while price was holding support, and what followed was a very strong move higher. Then look at point C. Once again, the MACD crossed bullishly at an established support area, and the result was another explosive move to the upside. Those are the types of setups I want to see because they combine price structure with momentum confirmation.

And that’s really the key here. MACD signals by themselves mean very little to me unless they are combined with other tools. I want to see alignment. I want support and resistance, relative strength, volume, and momentum all working together. When multiple factors start lining up at the same time, that’s when I begin to pay closer attention because those are often the setups that can lead to meaningful moves.

Now at point D, we once again have a bullish MACD crossover occurring right at this same important support zone. That doesn’t guarantee anything, of course, but it does suggest that momentum may be starting to shift in favor of the bulls. If that’s the case, then I think higher prices are likely, especially if MSOS can reclaim and close back above $4.00. That would be an important sign that buyers are regaining control and that this bounce has real follow-through behind it.

For now, I think this is a chart worth watching very closely. We have a major level, we have momentum beginning to confirm it, and we have prior examples on the chart showing how powerful these setups can become. Now we wait and see how things unfold.

For more analysis and market insights, visit my homepage