Intel bags massive Apple chip deal — ride the momentum on Intel
Thesis
Landing a manufacturing deal with Apple is a massive vote of confidence in Intel's domestic foundry strategy. Because this news fundamentally changes Intel's revenue narrative, the stock has room to run higher as large institutional investors adjust their long-term models. The smart approach is to wait for the initial euphoric morning jump to cool off slightly, then buy the momentum as the stock starts its next leg up throughout the day.
Strategy approach
Build a momentum pullback strategy for INTC on the 1-hour timeframe. Entry: wait for the initial pre-market gap up to settle, then enter long when the price pulls back to the VWAP and the 14-period RSI drops below 60 before turning back up. Exit: take profit at a 4% gain, and set a hard stop-loss 3% below the entry VWAP.