It will be joined by Capital One (COF) - Get Report, Sketchers (SKX) - Get Report and E*Trade (ETFC) - Get Report, after hearing from Domino’s (DPZ) - Get Report and Southwest (LUV) - Get Report on Thursday morning. In short, it’s going to be a busy day. But make no mistake about it, Intel will be a key focus for investors.
It’s not just because it’s the first of the major chip stocks to report - doing so ahead of Advanced Micro Devices (AMD) - Get Report and Nvidia (NVDA) - Get Report - but because Intel's technology has a wide-reaching impact. Investors will want to hear management's commentary on the current business environment to get an idea of what demand around the world is like.
While the trio of chip stocks were hit hard, AMD, Nvidia and Intel have all bounced hard over the past month. Let’s take a closer look at the charts to get an idea of what the technicals suggest.
Trading Intel Stock
A glance at the weekly chart above highlights how quickly Intel stock went from a 52-week high to a 52-week low. However, the speed in which Intel stock has been able to rebound and reclaim many key areas on the chart has been impressive.
For instance, after trading down to the 200-week moving average, Intel stock made a major recovery and quickly reclaimed both its 50-week and 100-week moving averages. Further, it reclaimed the $56 to $57.50 area, with the former serving as the 50% retracement for the 2020 range.
Currently, shares are having trouble pushing through the $61 area and filling into the gap up near $64. Trading just a hair below $60 and traders have a decent roadmap ahead of them.
If the earnings results induce a bullish reaction, see if Intel stock can push through $61 and fill the gap up at $64. Above that and it puts $68 in play and further adds to the bulls’ case, as investors will look for this current resistance area to become support.
On the flip side, let’s say earnings induce a negative reaction. In that case, I would really like to see INTC shares hold $56 as support. Not only is this area the 50% retracement for the coronavirus decline, but this level has been multi-week resistance after serving as multi-week resistance before that.
Below $56 puts $53.50 in play, where traders will find the 50-week moving average and the 38.2% retracement. If those levels fail to support Intel stock, it puts the 100-week moving average near $51 on the table, followed by the 23.6% retracement at $49.61.
Here’s the bottom line: On the upside, see how Intel handles the $61 level and gap zone. On the downside, see if it can hold the $56 mark.