Technical Analysis – Intel stock stabilizes after sharp drop; neutral in short-run
December 14, 2018 1:26 pm
Intel’s stock fell sharply after touching an 18-year high of 57.57 in early June, before finding support around 42.30, a low last seen in February, and subsequently rebounding somewhat. However, given that the stock recently posted a higher high of 50.50, and price action is taking place above the 50-day simple moving average (SMA), the near-term outlook seems neutral.
Momentum oscillators concur. The RSI is pointing up but is only marginally above its neutral 50 zone. Meanwhile, the MACD is in positive territory, but below its red trigger line.
On the upside, advances could stall initially around 49.20, which capped several bullish moves in November. A bullish break may open the way for the 200-day SMA at 49.85, where another push higher would turn the short-term bias to cautiously positive, setting the stage for a test of the 50.50 territory.
On the flipside, immediate support to declines may be found near the 50-day SMA, currently at 49.90. A move below it would shift the outlook to a more bearish one, turning the attention to the December 7 low of 46.20. Even lower, the October 11 trough of 43.70 would come into view.
Summing up, the short-term bias is neutral so long as the price trades between the 50- and 200-day SMAs.
Intel’s stock fell sharply after touching an 18-year high of 57.57 in early June, before finding support around 42.30, a low last seen in February, and subsequently rebounding somewhat. However, given that the stock recently posted a higher high of 50.50, and price action is taking place above the 50-day simple moving average (SMA), the near-term outlook seems neutral.
Momentum oscillators concur. The RSI is pointing up but is only marginally above its neutral 50 zone. Meanwhile, the MACD is in positive territory, but below its red trigger line.
On the upside, advances could stall initially around 49.20, which capped several bullish moves in November. A bullish break may open the way for the 200-day SMA at 49.85, where another push higher would turn the short-term bias to cautiously positive, setting the stage for a test of the 50.50 territory.
On the flipside, immediate support to declines may be found near the 50-day SMA, currently at 49.90. A move below it would shift the outlook to a more bearish one, turning the attention to the December 7 low of 46.20. Even lower, the October 11 trough of 43.70 would come into view.
Summing up, the short-term bias is neutral so long as the price trades between the 50- and 200-day SMAs.
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