Wednesday, 19 October 2016

INTC - big break lower

Whilst the broader market managed moderate gains, there was severe weakness in Intel (INTC), which snapped lower on earnings in Tuesday AH, and settling Wednesday lower by -5.8% @ $35.56 - the lowest level since early September.

INTC, daily

INTC, monthly


*its notable that today's big drop was after yesterday's closing black-fail candle. Those are never to be dismissed lightly.

Unadjusted EPS was 80 cents - well above market consensus of 73... but that was not enough to satisfy the mainstream. With a slightly lowered forecast for Q4, the market duly whacked INTC stock.

There is a clear break of first support of 50dma in the $36.40s. Next big price-cluster support is in the $34.40s.

Those equity bears seeking massively lower levels in the broader US equity market, are going to need to see stocks like INTC, break below core rising trend. In Intel's case.. that is in the low $33s.

So... it can be safely said things only turn 'decisively bearish', if INTC is trading in the $32s in November.. or any time after.