Since Friday’s morning’s post breakdown, which dropped Intel (NASDAQ:) over 10%, shares have remained under pressure. The stock was off another 2.5% this morning as it extends the drop from the October peak to 20%. This steep flush is beginning to look very much like the post-earnings action back in late July. We expect more downside in the near term as INTC drifts towards a major support zone.
INTC put in major yearly lows in early 2018, mid-2019 and March 2020. The stock held the $42.00 to $43.60 area at these important bottoms. If shares can stabilize in this support zone again, we believe a very low risk entry opportunity will develop for patient investors. Adding to the bullish case would be a divergent low in the daily MACD indicator.
INTC sports a 3% dividend yield.
Note: We are long INTC in some managed accounts.
You can read Gary S. Morrow’s original post here.
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