
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.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.