Intel took a major hit on April 26 following a rather uninspiring earnings report. The stock closed that session with 10% loss, it’s biggest one day decline in years. INTC has been drifting lower since and at this week’s low the upper band of a major support zone is coming into play.
Highlights: At this week’s low INTC is down over 16% from the April highs. This steep decline has driven the stock back into oversold territory(daily MACD).
The 200 day moving average provided heavy resistance during the fourth quarter of last year. This MAV is now in a supportive position.
A solid support zone runs from the $50.00 area(4th quarter high) down to $49.00. This key area includes the October, November and January highs near the upper band and the 200 day moving average near the lower band.
On the downside, a close below $48.00 would violate the February lows sending a clear warning sign that more basing will be needed before INTC can regain its footing.
At time of publication we are long INTC in most managed accounts.