I’ve been around long enough to remember when Intel (INTC) was the NVIDIA of the day. Now, INTC is under severe pressure, having suspended its dividend, and is currently being considered for removal from the Dow 30 Industrial Average. Oh, how the mighty have fallen!
With INTC having declined so much, we wonder if it is time to be bargain hunting this stock. Let’s look at charts in three timeframes to find the answer.
The daily chart below shows it making new 52-week lows today. The daily PMO was rising above the signal line, but it has turned down, and the PMO is deeply below the zero line. INTC has been in a narrow trading range for about a month. If it were to break up out of that range, it might be considered as a buy candidate, but, for now, it doesn’t look promising.
The weekly chart doesn’t look any more promising. We can see that a line of support has been violated, and that the weekly PMO is falling well below the zero line. No encouragement here.
Finally, the monthly chart shows that a very long-term support line has been violated, and the monthly PMO is falling below the zero line. INTC has just entered a zone of congestion, wherein it may find support, but the potential is for price to fall to 7.50.
Conclusion: So, to answer our initial question, no, there are no signs in any of the three timeframes that now is the time to be buying this stock. Probably the first sign that it may be time to consider an entry would be when the daily PMO turns up, accompanied by positive price action. Gradually adding to the position could take place as we see similar signs in the weekly and monthly time frames.
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Carl Swenlin is a veteran technical analyst who has been actively engaged in market analysis since 1981. A pioneer in the creation of online technical resources, he was president and founder of DecisionPoint.com, one of the premier market timing and technical analysis websites on the web. DecisionPoint specializes in stock market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and blog contributor.
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