Intel is moving lower on earnings. Here’s the level it has to hold before faces an even deeper dip.
Intel (INTC) – Get Intel Corporation Report shares are getting buried on the day after the company reported its fourth-quarter earnings.
The action comes after a mixed day in the overall market and as investors try to sort out the impact from the Federal Reserve.
As it pertains to Intel, the stock is hitting new multi-month lows, although it’s bouncing from session lows.
That’s even as Intel reported record sales and strong earnings results. Unfortunately, guidance is what’s weighing on the stock today.
One Real Money contributor said Intel could retest its recent lows this morning and with today’s flush lower, that outlook has come to fruition.
Now the question is, can Intel find its footing?
The results are weighing on the semiconductor industry, as Nvidia (NVDA) – Get NVIDIA Corporation Report and Advanced Micro Devices (AMD) – Get Advanced Micro Devices, Inc. Report are also down on the day.
Trading Intel Stock
Daily chart of Intel stock.
Chart courtesy of TrendSpider.com
In December and the early part of January, Intel stock had a full head of steam as it pushed through the mid-$50s.
However, it ran right into the fourth-quarter high at $56.07, as well as the 50-week moving average and the weekly VWAP measure.
It has since reversed hard (along with the rest of the market), falling in nine of the past 11 sessions.
Amid the fall, Intel broke back below all sorts of key moving averages and retracement levels. Unfortunately for the bulls, this one doesn’t look so good and right now, the only saving grace is the fourth-quarter low.
That level comes into play at $47.87 and the stock is bouncing from that mark as we speak.
If it holds, let’s see if Intel stock can rebound back to $50. Above that level and the 50-day moving average is on the table, followed by the 200-week moving average.
Should Intel break below $47.87 and fail to reclaim it, it creates a quarterly-down rotation. In that scenario, I would be looking at the fourth-quarter low from 2020 near $43.60.
It’s not a great setup in Intel at the moment, short of the current low holding. In that sense, I would rather look at Nvidia or AMD, which have better trends.
