BUY INTEL (INTC) on any dip towards the $48 support area

NASDAQ:INTC   Intel Corporation
By looking at the daily chart , we can see the strong bullish rally that took the price from the March 23rd lows of around $44 to the June highs at $64, for an outstanding 45% increase in just couple of months. However, the stock didn’t stay there for long as a combination of a high profit taking interest and some further selling pressure took the price down again at the end of July to the $47-48 strong horizontal support zone . Since then, we have seen a volatile and choppy sideways price action between $48-52 levels.

The stock is currently sitting at the $54 mark after an attempt to make an upward break out of the above-mentioned range. However, we see multiple different and also strong resistances that are currently threatening the current bullish move. We can find the 100 DMA lying at the $54 mark and the strong horizontal resistance at $56. Today’s price action on the daily chart shows a bearish rejection candlestick , which in turn confirms the strength of the above-mentioned resistances and indicates that there might be further selling pressure ahead. This up move was anticipated as the stock built a meaningful support base around the $48 mark throughout the last couple months. However, we believe that the stock market in the US currently holds a lot of intrinsic risks - COVID-19, the upcoming presidential elections, the economic recovery etc. - which would probably mean that we could be in for a continued sideways and choppy price action in the coming months. At any rate, we our analysis shows that the uneven capital allocation across the different market sectors will continue to support the tech sector as well as the stocks in it. The large institutional investors will start looking for places to reinvest the tremendous profits that they have generated from the likes of ZOOM, TESLA , NETFLIX , Shopify etc. throughout the last 3-6 months, which will lead them to stocks like INTC!

We are bullish on the INTC’s stock and believe that any profit-taking corrections would give us a great opportunity to buy the stock at a good discount . This, in turn would give us a chance to maximize our profits to the upside, once the stock resumes its uptrend movement. Furthermore, some of the technical indicators that we are monitoring closely (50 DMA, 100 DMA, Bollinger Bands , RSI etc.) are currently showing exhaustion of the recent up move and are signaling that a potential return-move to the $48-52 range might occur very soon. This will be the right time to jump on the bullish Intel train, that will take you up to the $60 mark in the coming weeks and months.
Our long-term target levels are $61 and $66 respectively.



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