Skip to main content

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.

Chart of Intel.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

Comments

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. ( Click here to read the original post ) There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position. This first post in the series starts at the beginning: getting good investment ideas. Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets. As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professional