Tuesday, 2 June 2015

INTC - struggling after the Altera purchase

Whilst the broader market settled only a little lower, there was notable weakness in the tech giant of Intel (INTC), which settled lower by a rather significant -1.9% @ $33.27. Price structure across the last year is a viable H/S formation.. with a key floor in the $29s.

INTC, daily

INTC, monthly


Suffice to say, post Altera deal, INTC is struggling.

For the equity bulls out there who believe in continued broad equity strength across the summer/autumn, the price structure on INTC - a key Dow/tech stock, should be a real concern.

A failure to break/hold the $35s in the coming month or so would be a major warning of broader market downside.

In theory, a typical H/S, extrapolate 35/29...giving $6... and take 6 off the floor of 29.... giving $23s.   Right now, the $23s look exceptionally difficult. Most realistic downside case would be a full test of the breakout level of $25.

To be clear... I'm confident of long term hyper-strength in INTC to the $50s (by mid 2017), but there is certainly a bearish price formation setup for this summer/early autumn.