Is Intel's Pullback Over Yet?
Intel (INTC) - Get Report fell for the sixth straight session on Wednesday. Over the course of this streak, the stock has lost just over 4% and is on the verge of testing a very important support area. For Intel bulls, a hold near the $32.60 area is critical. If the stock is unable to regain its footing here, the pullback that began in late October could carry shares much lower.
Late last month, Intel's rally off the August lows entered a very heavy resistance zone. With the stock up over 35% during this run and reaching the highest overbought moving average convergence/divergence reading in over a year, a stall near key resistance was becoming very probable. Shortly after Intel hit the $34.75 resistance zone, a healthy pullback began. Yesterday's loss extended the pullback from the Oct. 23 peak to over 6%. This healthy action has been quite orderly so far and will remain so if investors make a stand soon.
Click here to see the below chart in a new window.
Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long INTC.