Intel (INTC) Stock Update: Bears regain control on yesterday’s surprising news

Intel inventory dropped 4.25% yesterday, closing at $21.88, following a key announcement: the corporate might halt advertising and marketing of its superior 18A chipmaking course of on account of low buyer curiosity, shifting focus to its 14A know-how as an alternative.

This decline got here regardless of energy within the broader semiconductor sector—notably, the SMH ETF rose almost 2% the identical day. That divergence indicators clear relative weak spot, a vital issue for short-term and swing merchants.

We had our preliminary video coverage on Intel stock recently, the place we present the larger image of the technical evaluation state of affairs. This a follow-up.

Key Technical Developments on the INTC Worth Chart (4 hour timeframe)

1. Break Beneath Worth Space Excessive (VAH):

   • The worth space excessive (labeled 6) of the sideways vary that started after August 2024 earnings is at $22.86.

   • INTC closed nicely under that stage, almost $1 decrease, confirming a failed breakout and return to the worth zone.

2. Failed Breakout Above Pink Resistance Line:

   • We beforehand famous that two consecutive 4-hour candles closing under the crimson resistance line would invalidate the bullish state of affairs.

   • That has now occurred, albeit with a marginal first candle. Nonetheless, the technical injury is obvious.

3. Help Not Holding:

   • Worth broke down the consolidation zone’s VAH (worth space excessive), crossed down the crimson resistance line and even the mid purple channel. Bears have regained management and so long as worth is under $22.50, bears may have the management.

Subsequent Ranges to Watch

• Quick-Time period Help: Backside rail of the ascending purple channel.

• Medium-Time period Goal: Level of Management (POC) at $20.20—a good worth zone with heavy historic quantity.

• Lengthy-Time period Purchase Zone: Round $19.17, the worth space low of the bigger consolidation vary (blue line).

Technique Options of INTC Inventory

If you happen to’re holding a place:

• Conservative merchants might need to exit now, even when the cease wasn’t technically breached.

• Hesitant to exit? Contemplate decreasing publicity by promoting half, a traditional methodology to handle uncertainty whereas preserving upside if bulls unexpectedly regain management.

This case illustrates how information alone (just like the seemingly vital from Intel yesterday) doesn’t decide route. Worth motion does. Dangerous information with dangerous worth response, within the underlying inventory, means dangerous. Excellent news with good worth response means good. Excellent news with an absence of worth response, or dangerous information with an absence of worth response — each, usually, signifies that the information was insignificatn.

In any case, Intel’s failure to carry key breakout ranges, particularly whereas friends rallied, speaks louder than the information itself.

Keep tuned for additional updates on INTC because it approaches deeper help zones and the market reveals extra.

Make investments and/or commerce INTC inventory at your individual danger solely.