The giant semiconductor Intel (INTC), which beat earnings-per-share (EPS) estimates, on the 23rd of July, but the weak guidance caused the stock to gap significantly lower, on the 24th of July. Intel stock has failed at its semiannual risky level at $65.02, June 5. It was above its annual pivot at $57.17 when it said that its profits beat, but the spacing below this level, the 24 July, caused a crash for as low as $46.97 31 July.
The company has a history of strokes quarterly results, but cautious guidance has been a major problem for Intel. The company has beaten expectations for 26 consecutive quarters. Intel is at a reasonable price with a P/E ratio of 8.59 and a dividend yield of 2.73%, depending on the trends.
The stock closed Monday, July 3, to $48.30, down 19.3%, year to date and an increase of 10.7% from its March 16 low of $43.63. Intel is in bear market territory, 30.3% below its Jan. 24 high of $69.28.
Intel makes computer chips for the integrated management of the digital platforms for the computing and communications industries. The company is one of the old tech stocks, which accuses its tech-bubble peak, which was set at $75.81 in August 2000. Intel focuses on data centres, services for server, network, storage and applications, and it provides applications in the cloud computing. The company has also made computer chips for self-driving cars, artificial intelligence, and the Internet of things.
The daily chart for Intel processors
The daily chart shows that Intel had been at the top of a golden cross since Oct. 25, 2019, when the 50-day simple moving average (SMA) moved above the 200-days SMA. This buy signal follow-up of the stock to its 52-week high of $69.29 game on Jan. 24. Intel is on the verge of confirm the death of the cross, as the 50-day and 200-day SMAs are converging to $58.58 and $58.47. A negative crossover will likely occur tomorrow.
The stock has had a positive reaction to earnings on Oct. 25. He has also had a positive reaction to earnings on Jan. 24, which led to the high of the day. Intel has dropped below 50-day SMA on Feb. 25 and then fell below its 200-day SMA, on 13 March, leading to the March 16 low of $43.63.
Following the V-shape of the bottom, the stock has returned to its 200-day SMA, on the 24th of March, and then reached its 50-day SMA on April 7. Note how the 50-day and 200-day SMAs are embraced, on 5 May. This lack of a negative crossing led to the test of its semiannual risky level at $65.02, the 5 June, which was a considerable asset for the occasion.
Following its July 23 earnings report, Intel stock gapped below its annual and quarterly pivots, two at $57.17. The low of $46.97 on July 31, the lines of this week of the value of the level of $47.13.
The weekly chart for Intel processors
The weekly chart for Intel is negative with the stock below its five-week modified moving average of $54.39. The stock is above its 200-week SMA, or the return to the average, to $47.44, which was tested last week as a buying opportunity.
The 12 x 3 x 3 weekly slow stochastic reading should decrease to 24.45 this week, down from 33.14 31 July. Back during the week of Jan. 3, this reading has been above 90.00 on a scale of 00.00 to 100.00, which put the stock in a “swell parabolic bubble formation and the bubble popped a lot of time.
Trading strategy: Buy Intel stock on weakness to the 200-week SMA at $47.44 and reduce the holdings on the strength of the monthly, quarterly and annual risky levels at $55.64, $57.17, and $57.17, respectively.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each level uses the past nine closes in these time horizons.
The third quarter of 2020 the level has been determined based on the 30 June close, and the level in the month of August has been established according to the July 31 close. New weekly levels are calculated following the end of each week, while new quarterly levels occur at the end of each quarter. Half-yearly levels are updated at mid-year, the levels are set throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.