Intel Fibonacci Confluence

A reader brought to my attention from my last “Chart Art Arc” post on Intel (INTC) that price also reflects a large-scale 50% Fibonacci Retracement.  He’s right, but I also wanted to show a second important Fibonacci Confluence at the $20.00 price level that also adds an interesting twist to the price chart.  Let’s take a look:

(Click for Full-Size Image)

What I’ve done this time is draw two Fibonacci Grids off the $12.05 lows both at the end of 2008 and beginning of 2009 to two separate price highs as shown on the chart - from December 2007 and August 2008.

What we see is a simple (no frills) Fibonacci grid that comes down off of both of these levels.

What is interesting is that two levels intersect at the $20 level - the 50% Fibonacci Retracement from the 2007 highs also corresponds with the 61.8% (shorter-term) Fibonacci grid from the 2008 highs.

Generally - though certainly it is not guaranteed - when we develop long-scale Fibonacci confluences at a certain level off of two separate price highs to a single low, this level provides resistance when challenged as we have done currently.

We’re seeing a downswing that appears to be forming off this level as mentioned in my prior, more esoteric “Arc Post” on Intel.

Let’s see if the $20.00 does indeed hold as expected resistance… or if the bulls just can’t be stopped at all.

Thank you to all readers and commenters on the blog - it’s so helpful to share insights that others might miss (like the Fibonacci grid above - I didn’t think to draw one!).