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 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 shows a rejection , 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 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, , 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 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.