Technical Analysis – Intel stock plunges after sharp selloff but uptrend intact
September 21, 2023 10:27 am
Intel share price nosedives days after hitting 40.00
Momentum indicators point to further losses in short term
But medium-term bullish structure intact for now
Intel stock tumbled in the past two sessions, losing about 8.75% of its value. Crucially, the price has slid below both its 20- and 50-period simple moving averages (SMAs), signalling a dramatic shift in the near-term picture from bullish to bearish.
The RSI has fallen from around 70.0 to below 50.0 but has yet to reach oversold territory, suggesting the selloff may not be over. The MACD has declined below its red signal line but remains comfortably above zero.
If the price resumes its freefall, the 100-day SMA could try to stem the bleeding around 33.27, while a further drop would bring the 200-day SMA into scope at 30.96. Slightly lower is the ascending trendline taken from the February low. A breach of the trendline would negate the bullish outlook in the medium term, turning it to neutral.
However, should the selling pressure ease and buyers step in, the stock would initially have to tackle the 20-day SMA at 36.23 before aiming for the 37.00 region, which capped gains in June and July. Overcoming this, attention would switch to the September high of 40.01, which if surpassed, would signal a resumption of the uptrend.
In short, the short-term picture is looking increasingly bearish but the uptrend should remain secure as long as the price holds above the ascending trendline.
Intel share price nosedives days after hitting 40.00
Momentum indicators point to further losses in short term
But medium-term bullish structure intact for now
Intel stock tumbled in the past two sessions, losing about 8.75% of its value. Crucially, the price has slid below both its 20- and 50-period simple moving averages (SMAs), signalling a dramatic shift in the near-term picture from bullish to bearish.
The RSI has fallen from around 70.0 to below 50.0 but has yet to reach oversold territory, suggesting the selloff may not be over. The MACD has declined below its red signal line but remains comfortably above zero.
If the price resumes its freefall, the 100-day SMA could try to stem the bleeding around 33.27, while a further drop would bring the 200-day SMA into scope at 30.96. Slightly lower is the ascending trendline taken from the February low. A breach of the trendline would negate the bullish outlook in the medium term, turning it to neutral.
However, should the selling pressure ease and buyers step in, the stock would initially have to tackle the 20-day SMA at 36.23 before aiming for the 37.00 region, which capped gains in June and July. Overcoming this, attention would switch to the September high of 40.01, which if surpassed, would signal a resumption of the uptrend.
In short, the short-term picture is looking increasingly bearish but the uptrend should remain secure as long as the price holds above the ascending trendline.
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