Potential signal:
- I am buying this stock, with a stop at $97, aiming for a $15 move to the upside.
Intel fell hard on Wednesday, as we find ourselves testing a major support level in the form of $100.
Intel (INTC)
Intel continues to be very volatile right along with the rest of the stock market as it plans to sell a 5 billion euros expansion to upgrade Fab 34, add advanced equipment, and expand wafer transport to boost capacity for Xeon 6 and next-gen Intel 3 Xeon chips for artificial intelligence. This is part of what is driving the market, as the major expenditure of capital could affect a certain amount of profitability. That being said, longer term, this should be a boon for the company, and it's worth noting that the market is hanging around the $100 level. The $100 level, of course, is a large, round, psychologically significant figure, and it's an area that should attract quite a bit of attention. I know that it's attracted attention from me, and therefore I'll be watching it very closely.
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Technical Indicators and Upcoming Earnings Drive Strategy
The 50-day EMA offered a little bit of a barrier to the upside, so we have pulled back from there, and I think in general, when we look at the price action over the last couple of months, this is an area that I think continues to be important. It is worth noting that towards the end of the day, we did see buyers jump back into the market, but if we can bring the market to the upside, then it will probably challenge that 50-day EMA yet again.
I am going to, more likely than not, buy very slowly and then add as the trade works out, or cut bait if we drop below $97. Earnings come on Thursday, July 23, and that, of course, will have a major influence on what happens next. Earnings are estimated to be 0.213 cents per share, with estimate of revenue of $14.41 billion. Between now and then, we may spin wheels and just simply try to see if we can hang on to the crucial $100 level.
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