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Intel Corp (INTC) - February 1, 2024


Intel Corporation (INTC) had quite an amazing year in 2023 on a relative strength basis climbing from the bottom of the red zone to the top of the green zone in the SIA S&P 100 Index Report. For 2023, Intel finished with a gain of 94.56% compared with a 2023 gain of 30.83% for the S&P 100 Index. 2024, however, has been a different story. Since the start of this year, Intel has been tumbling back down the rankings, falling 30 spots over the past month to 36th place and falling out of the green zone back into the Yellow Neutral Zone. Year to date, INTC is down 14.2%, while the S&P 100 Index is up 2.3%. Candlestick Chart Breaks Down:

A recovery trend in Intel (INTC) shares accelerated late last year but that now appears to have been too much too soon, and the shares have gone into a correction. Last month, the shares took a run at $50.00 in what appears to have been a short-term buying climax. Not only did the shares fail at a big round number level – right in the middle of a bearish Evening Star candlestick pattern, but last week, a breakdown in the shares became clearer when they took out their 10-week moving average on a spike in volume (circled).

Downside support for INTC may appear at uptrend support lines near $37.50 or $35.00. Initial resistance appears at the 10-week moving average near $46.00.

Point and Figure Chart Starts a Downswing:

Intel (INTC) has been under accumulation since late 2022, steadily recovering in a Rising Channel of higher highs and higher lows. At the start of this year, the shares broke out by one row and peeked above $50.00 briefly, but failed to hold on to it and completed a bearish Bull Trap peak.

Since then, the shares have rolled back downward, completing a bearish Double Bottom pattern which signaled the start of a downturn, and so far, appears to be a correction within an ongoing uptrend. Potential downside support tests appear near $41.25 based on a horizontal count and prior support, then a previous breakout point near $38.10, and then the $34.50 to $35.90 zone where a horizontal count, an uptrend line, and previous highs/lows cluster. Initial resistance on a bounce appears near $47.35 based on a 3-box reversal.

With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, INTC is exhibiting short-term weakness against the asset classes.

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