INTC -- Semicndtr-Brd Line -- Technology
27-Sep-00 11:37:42 Strong bottom fishing is helping Intel Corp
as the stock tries to form a bottom in the mid $40s. Shares of
INTC gapped down 22% last Friday, September 22 on the company's
downwardly revised revenue guidance. Growth investors fled the
stock on the news and have continued paring their positions,
keeping INTC under pressure. The 5-minute interval of the I-
Watch pre- trade chart shows that sellers are eager to offer
shares in INTC's "mini-rebounds," creating resistance around the
$45 level. It is worth noting that the super sell message volume
has outpaced super buy message throughout the session. One
would expect more buyers to step up and bid for shares, given
the recent decline. Volume remains heightened, with over 35
million shares exchanged, though it is well off the previous 3
session's total volume of 112 million-308 million shares. The
strong decline in activity suggests that supply is beginning to
dwindle. Keep in mind, though, that there are plenty of
shareholders, hanging on to losing positions, who are waiting
for a short-term recovery in which to trim their positions,
which will keep INTC weak. Additionally, mutual funds are likely
hesitant to show INTC as one of their top holdings in the 3Q
reports, given the well-publicized shortfall announcement. The
time and sales data shows at 11:20 AM, 400k shares crossed for
$44, below the best bid of $44 1/16, which is indicative of a
seller willing to take a reduced price in order to cross the
trade. Similarly, 225k shares traded for $44 1/4 at 11:09 AM,
while the best bid was $44 5/16. Not surprisingly, Smart Money
participation remains heightened with one-quarter of INTC's
volume attributable to trades of 10k shares or more |
