In fact, shares were higher by 6.25% at the session highs, but have since reversed and have turned slightly lower.
The rally came as a result of the company’s positive update. Intel said it would exceed its previous guidance for the quarter as notebook demand has remained strong.
The company also said it plans to invest $20 billion in two Arizona production facilities. That didn’t seem to bother Wall Street on Wednesday morning, but the mood has since soured.
Is the dip an opportunity or will Intel shares continue to unwind?
Since gapping down from $64 in the first quarter of 2020, Intel stock has had quite a bit of trouble maintaining upside momentum.
It took almost a year for it to break out from under downtrend resistance (blue line), but once it did so, the stock was able to put together a strong rally.
While Intel was able to push through $64 on the recent rally, it has been unable to close above this mark on a weekly basis. Reversing lower now on Wednesday does not paint the brightest picture, either.
On the downside, keep an eye on the 10-week moving average. This level has been pretty solid support so far this year. For now, let’s look for this level and the $60 mark to be support until it breaks.
Should it break, there should be strong support between $54 and $55, with a plethora of moving average support nearby.
On the upside, keep an eye on $64. Back above this mark and perhaps Intel stock can challenge this week’s high at $67.44. Above that and the 2020 high is in play near $70.