TA on Intel: hasnt based yet, but this might be its low
INTC = 57.5 close friday
under 60 now, INTC is testing its April/May lows in mid50
last spring whenever offered at mid50 levels, it shot back up strongly
I count four big reversals in that time period
so support is there, and with heavy electricity
these two weeks have seen INTC careen thru its shorter term Moving Averages
the 18,30,50 day MA's are bunched at 66-68
its 200day MA is 59
so days of reckoning are upon us now
all through spring and summer, the 100day MA has served as lower boundary for its nice uptrend channel
that channel was broken last week, as was the 100MA
now the 200MA is at work, we will see its power or NOT
we have an interesting gap at 63-65
currently several points below that gap now
I suspect we will see a reflex rally
that gap served to enhance the downward exhaustion IMO
I say exhaustion since volume sharply rose last week
could be viewed as a climax of selling
it will be interesting to see what happens as that important 100MA is approached from below
100MA at 65
daily stochastx indicator is MISERABLE
it is at the horrid extreme under 10 now
this stock is absurdly oversold
relative strength is comatose
RSI is almost at the extreme 20 level
stocks usually respond favorably upon touching such oversold levels
a friend shared the opinion that funds buy tech stocks by loading up the leaders, including INTC and CSCO
lately they might be balancing, shedding leaders in favor of niche and second tier players
I hope so, which would mean nothing is inherently wrong with INTC shares
I personally find the opposing forces disconcerting
GoldmanSachs promoted chip stocks in midAugust
minor Houses downgraded Intel after Labor Day
I cannot say about six weeks from now, but INTC certainly looks ripe for a reflex rebound recovery of sorts here
/ jim |
