Is Intel in Trouble?
Big Red Week for Intel
Intel experienced a sharp selloff last week after reporting billions in losses from its foundry business. Apparently, investors didn't like the headlines.
Head-and-Shoulders Pattern?
The selling corresponds with the price breaking down below the neck line of a head-and-shoulders pattern as well as a long-term Fib level. There was high volume associated with the selling. This adds validity to the bearishness. Bearish candlestick patterns like this near 52-week highs are always worrysome. The technical picture is starting to look more bearish.
Lower Highs?
Technically, the price is still in an upward trend. But if the current selling continues, then we might see lower highs print on the long-term timeframes. This would be very bearish.
Strong Uptrend
Even with all of the selling last week, INTC is still in a technical uptrend within the price channel you can see in the chart below. This uptrend is still in play until the price drops below the lower support level of this channel.
Possible Support Zone
If we don't see a rebound off of the long-term trending support I have mentioned, then there are a couple of horizontal support levels just beneath.
When is it Time to Buy the Dip?
The selling last week was very scary. I don't blame investors for selling the negative news as this company is being traded at over a 90 P/E ratio. With a high valuation like this, I think any negative catalyst like that will instigate a lot of selling. But the uptrend is still holding. If and when the price action drops below long-term trending support, then we can consider a possible change in the trends.
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Julia G M : Intel looks mega bearish
AbdulK Julia G M: 100% agree
Ultratech Julia G M: mega bearish turns into fk I wish I'd bought that dip I'd be all set right now. tech stocks always rebound when nasdaq is up stocks like Intel have no choice to eventually move
SpyderCallOP Ultratech: I know what you are saying. I will definitely be looking for a good dip buy in this name.
Ultratech SpyderCallOP: I think think of quite a few scenarios here. Tsm once said our earnings will suck and they're low on money and the stock flew ever since. I wouldn't want to buy and always sits under 50 either. or look back and is 300
Ultratech : thinking. if sp/nasdaq high may want to wait til it dips bringing intc down more possibly
Ultratech : thinking. if sp/nasdaq high may want to wait til it dips bringing intc down more possibly
DingoTrader : great analysis
Silverbat : AMD is next
SpyderCallOP DingoTrader: Thanks Dingo
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