Intel will report its Q4 results after the bell tonight. Following the last two reports(10/24 and 1/23) the stock opened the following sessions with huge upside gaps. Ahead of tonight’s news the stock is tracing out an inside day as it continues to consolidate after a 40% rally off the March lows. This powerful rebound has left behind layers of support including an upward sloping 200D moving average. INTC is one of only six stocks in the Dow Jones Industrial Average that are above their respective 200D mav’s(JNJ, UNH, AAPL, MSFT, WMT). We consider the $56.00 to $55.00 area as key support. A close back below $51.00 would violate the April lows sending a clear warning sign that the 200D is losing its grip. On the upside the $64.00 area will provide a challenge. Once past the stock will have a clear path to new 2020 highs.
At time of publication we are long INTC and will be looking to add on weakness.