Intel at support already - what's next?

I wrote a post just a couple of days ago reflecting on the recent downgrade of Intel (INTC). The title of the post was "Intel downgrade may set up buying opportunity but not right away."

My premise in that post was that now that Intel had started falling it would have to drop to the $22 to $23 level before it became attractive. I didn't expect to see that happen by the end of this week. Intel closed the week at $22.67. What do we do now?

The swiftness of Intel's plunge and the fact that it has happened on much higher than average volume calls for caution. Take a look at the chart below. The stock is now well below its 200-day moving average. Sure, it appears to be oversold but MACD confirms Intel has taken a turn for the worse.

With the whole market backdrop looking uncertain now, it is best to let Intel ride for a while. It it breaks much below the $22 level it could be a long way down. Keep in mind, Intel was a $17 stock as recently as summer of 2006.

Disclosure: author owns no shares of INTC