Dow component Intel Corporation (INTC) reports earnings after Thursday’s closing bell, with Wall Street analysts expecting an earnings per share (EPS) of $1.11 in the second quarter of 2020 sales of $18.55 billion. The stock ran up after the chip giant beat first-quarter 2020 estimates and guided second-quarter EPS below consensus, in April, citing headwinds as a result of the COVID-19 pandemic. The company has chosen not to provide the year 2020 and orientation to time.
- Intel stock has attracted little interest from buyers since the month of March, despite rising prices.
- The stock has not made a return in the 2000 “bubble” to the top, to the difference of its high-tech peers.
- Wall Street is more bearish on the prospects of Intel.
Goldman Sachs downgraded Intel stock to “Sell” two weeks ago, lowering its price target to$ 54. The company joined three other finance companies with the lowest possible rating, adding to a broad base of support to “Hold” a consensus on the basis of 8 for “Buy” and 11 “Hold” recommendations. Price targets range from a low of $45 to a Street high of$ 85, while the stock is now trading right on top of the $62 target median.
Intel’s stock reversed in June in the top half of the first quarter trading range, about eight points below January’s 20-year high of $69.29. It is always located well below the 2000 bubble peak, failing to mount resistance in the long term, in contrast to the majority of the big tech universe. The Buildup has not managed to recover from the pandemic of swoon, drifting in the vicinity of March’s multi-year low at the end of the month of June. This does not bode well for higher prices after this evening of the confessional.
The Accumulation refers to a general increase in the activity of sale of a property. In this case, the asset is said to be “under-accumulation” or “accumulated.”
Intel Long-Term Graph (2000 – 2020)
The stock posted a record high of $75.81 in 2000, and has broken down from a double top, a few weeks later, dropping to 82% in the October 2002 low to $12.95. It has recovered about half those losses in the third quarter of 2003, marking the highest for the next 11 years, before a secondary decline that violated the prior low before dropping back to 12 years from the bottom in March 2009. Bulls have taken control in the new decade, carving a rise that reached the 2003 resistance in 2014.
This price level has marked an impenetrable barrier until 2017 breakout has released three new records in January 2020, 12 years old, raised to $69.69. It has carved a small double top pattern at this level and broke down in February, down for the first nine-month low in the middle of$40. The increase in subsequent reversed after the mounting of the .786 Fibonacci sale retracement level in June and settled near the 50 and 200 days exponential moving averages (EMAs) of the front of this week’s confessional.
Rise of the describes an increase in the price of a financial instrument since the previous transaction. A slight increase occurs when the price of a security rises relative to the last tick or trade. A slight increase is sometimes also called a plus tick.
Intel Short-Term Chart (2018 – 2020)
The balance volume (OBV), the accumulation-distribution indicator topped out in December 2017 and entered into a distribution phase that ended a 20-month low in May 2019. OBV reversed 2017 peak after the run-up in January-and toppled once more, after reaching the 2019 low. The June decline of nearly tagged the March lows, noting more than expected, the selling pressure relative to other tech stocks. This does not bode well for a rapid recovery to pre-pandemic levels.
The bounce reversed at the .786 retracement of the first quarter in decline after the long-term uptrend reversed just above the .786 retracement of the 2000, in 2009 the downward trend. This symmetry should be closely monitored because it suggests that the long-term uptrend is coming to an end, setting the stage for much lower prices in the years to come. However, there is no way to measure the duration of the filling process, so it is best action game in the short term until long-term signals to emerge.
The Bottom Line
Intel stock has attracted little interest from buyers for the last four months, increasing the odds that gravity will take control after this week’s earnings report.
Disclosure: The author held no positions in the aforementioned securities at the time of publication.