Intel Corp. (INTC) stock opened with a gap to the downside Thursday. The shares have been finding buying interest in the $26-$24 area since October and I suspect the dip buyers will be active again this month and into June.
Let's check the charts for further information.
In the daily bar chart of INTC, below, I can see that trading volume has been more active since early February. The On-Balance-Volume (OBV) line moved higher from February to early April before moving modestly lower.
The Moving Average Convergence Divergence (MACD) oscillator is slightly below the zero line. Then shares are below the moving averages but these are lagging indicators.
In this weekly Japanese candlestick chart of INTC, below, I can imagine that prices are below the 40-week moving average line. The weekly OBV line looks like it has been outlining bottom since October.
The MACD has been improving for months and is just slightly below the zero line.
In this daily Point and Figure chart of INTC, below, the software suggests a modest downside price target in the $22 area.
In this weekly Point and Figure chart of INTC, below, I can see that the software is projecting the $49 area as a potential price target.
Bottom-line strategy: I do not see this as the time to be a big bear on INTC. I think the prior lows will hold but I will be a "wait and see" guy for now.
