Since Friday’s morning’s post earnings breakdown: https://www.zacks.com/stock/news/1082664/intel-intc-q3-earnings-beat-stock-down-on-weak-sales-mix?cid=CS-MKTWTCH-HL-analyst_blog|earnings_article-1082664&mod=mw_quote_news_seemore, which dropped Intel over 10%, shares have remained under pressure. The stock is 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.
We are long INTC in some managed accounts.