Thursday, 22 June 2017

INTC - having technical problems

Whilst the main market remains close to historic highs, Intel (INTC) has been notably weak, settling lower for a third consecutive day, -0.6% at $34.36. The mid term bullish trend from summer 2015 has been decisively broken. The last line in the sand for the bull maniacs are the $32s.

INTC, daily

INTC, monthly


First, just reflect on the fact that whilst the Nasdaq is trading very close to recent historic highs, the tech giant of Intel really is struggling. Seen on the bigger monthly chart we have a very clear break of trend that stretches back almost two years.

So... what now?

The break of rising trend is suggestive of further near term weakness to the $33/32s.

Things would turn extremely bearish with any price action in the $31s.

Best guess: The $32s become near/mid term support, with a whipsaw upward after earnings. Mid term target is a monthly close >$38.00 (before year end), which will then offer a challenge of the Aug'2000 historic high of $52.10 in late spring/summer 2018.

Yes, $52.20 is a long way up, but its a valid scenario, unless the main market breaks its mid term upward trend from early 2016.