After three days of increasing weakness, Intel (INTC) - Get Report is beginning to stabilize. The stock began this week with a slight gain before suffering three straight losses on accelerating trade. On Thursday, shares dropped nearly 3% before bouncing slightly into the close. On Friday, Intel is holding up well as the $33.50 area comes into play.

Just ahead of Intel's disappointing third-quarter earnings report, the stock was very near its 52-week highs. The massive breakdown on Oct. 19 was a sharp reversal of the bullish action over the previous three weeks.

Intel has been under heavy pressure since. Even during the powerful post-election rally, the stock was unable to gain significant ground. This week, shares have been under renewed pressure and have retested the post-earnings low. 

In the near term, Intel investors should closely monitor the recent lows. This area is near the upper band of a major support zone. Intel's 200-day moving average rests at $33.55, while the November low is near $33.40. At the lower band of this important zone is the June high of $33.00. Intel's late-summer rally began its second leg once the June high was cleared.

If the stock can continue to build a base in this area, a significant low may be in place. On the downside, a convincing takeout of the $32.30 level would violate the July lows, indicating more downside is ahead.

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This article is commentary by an independent contributor. At the time of publication, the author was long INTC.