I'll admit: Fundamentally, I like Intel (INTC - Get Report). But I don't like its technical setup right now. Over the last few months, Intel has been forming a bearish descending triangle that finally broke out at the start of September. So, like this stock as I may, I'd recommend getting out right now.
The descending triangle is a pattern that's formed by a horizontal support level that acts as a sort of "floor" for shares and a downtrending resistance level. As Intel bounced in between those two price levels, it was getting squeezed closer and closer to a breakdown below support. When that happened, investors had their sell signal (and more opportunistic traders had their short signal).What's significant about Intel is the fact that the price span at the start of the pattern was so wide. That width has implications for the downside objective (for more on that, check out our primer on Picking Price Targets). So there's a lot further for Intel to slide before its high probability price target down at $20 gets achieved. Caveat Emptor. For another take on Intel, it also shows up on a recent list of 5 Stocks to Store Away for 5 Years.
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