The charts of chipmaker Intel (INTC) were reviewed back on July 29 where we noted a Point and Figure chart target of $30. INTC has reached that downside price objective so let's check on the charts and indicators again.
In this daily bar chart of INTC, below, we can see that prices have been in a longer-term decline the past few months. INTC is trading below the negatively sloped 50-day and 200-day moving average lines.
The daily On-Balance-Volume (OBV) line is bearish and tells us that sellers of INTC have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment.
In this weekly Japanese candlestick chart of INTC, below, we still see a bearish picture but this chart is likely to be the first to register a bottom reversal. Prices are in a downward trend and trade below the 40-week moving average line. The recent candles are red (bearish) but the size of the real bodies has been getting smaller. This means that buyers and sellers of INTC are getting into balance and this can foreshadow a reversal.
The weekly OBV line is pointed down and so is the MACD oscillator.
In this daily Point and Figure chart of INTC, below, we can see that prices reached and exceeded a downside price target of $32.
In this weekly Point and Figure chart of INTC, below, we can see that prices reached a price target of $30.33.
Bottom line strategy: Reaching a downside price target on a daily and a weekly Point and Figure chart is not necessarily a reason to buy, but it is a start in the right direction. Let's watch the price action of INTC closer as we could start to see bottoming price action. Patience.
