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Since Friday’s morning’s post earnings breakdown:|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.