On 16 July, Intel (INTC) share price jumped by almost 10% in anticipation of its quarterly report. I placed a punt on the price dropping from that spike. I placed a limited order to close the trade at $32, which was a reasonable expectation if the price fell sharply from the top of the spike. Now I want to project the most likely bottom to the spike, seeing that the price is falling not so sharply, and adjust my exit price accordingly.
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The second half of May saw an acceleration in Intel's upwards trend, the price breaking through the Old Resistance Line. The market correction many people expect may bring a substantial downwards correction, but for the moment we are concerned only with predicting the bottom of the current spike.
The dotted line shows the price falling to the current Support Line, and bottoming at $32.49. To be reasonably sure of successfully closing the Trade, I have adjusted my exit price to $33.