Intel (INTC) Stock Review
When you think of a technology stock in 2016, most people would not consider Intel as one of their top 3 picks for technology names. Yet Intel who during the Tech boom rode to dizzy heights, climbing from just under $30 a share back in June 1999 to an all time high of $75.81 in the first week of September 2000, which was a 152% return in a 15 month period.
After the tech boom crashed in late 2000, Intel like many technology stocks fell sharply and continued falling as Intel languished lower for the next 8 years to a multi year low of around $12 a share back in February 2009.
Intel Begins To Recover From Tech Bubble Crash
After touching the low in 2009, Intel eventually reversed its downtrend and followed the market higher as the recovery from the 2008/9 crisis lifted the whole market.
Intel has not looked back since than, as the stock has steadily continued higher over the last 7 years and last week reached a multi year of high $38.05 before pulling back from $37.25 resistance level on the monthly chart. (See chart below)
Can Intel Reached the Tech Boom Highs?
If Intel is able to close above the $37.25 resistance level on a monthly chart the next resistance level is around $41.15.
The interesting thing is that after the $41.15 level, there is not much resistance until you reach the $63 a share level. This would be a big move for Intel to move to from the $41.15 level. So if Intel could sustain the momentum and close above $41.15 on a monthly chart it has the opportunity to head significantly higher.
Viewing Intel on a weekly chart, you can see over the last 2 years that Intel has been a wild ride. After making multi year highs back in December 2014 around the $37.65 level, it fell all the way back down to $25.00 a share in August 2015. It then preceded to climb back higher again to the previous highs of 2014, shown with the 2 black circles (see chart below).
Failure to close above the current resistance level of $37.65 on a weekly basis, Intel would most likely head back to $35.00 support level. (Shown in weekly chart below)
Zooming in on a daily chart below for Intel over the last few months, you can see that the chart is quite bullish. Intel is currently above the 50 day (black line) and 100 day (red line) moving averages, and its within its uptrend .
Last week Intel tried on 3 occasions to close above resistance intra-day (see circle below), before closing below resistance on each attempt.
After rejection of resistance Intel could test support area and its uptrend shown with the square box (see chart below), before trying again to close above resistance and break out to new highs.
If Intel failed to hold the $36.55 support level, its next support level would be at $34.25, which would also mean that the daily uptrend would of reversed. However this is unlikely given the bullish indicators Intel is currently displaying on all 3 charts shown here.
If you liked Intel's stock review, you can take a look at some of the more recent stock reviews with, Apple, Wells Fargo and Australian REIT sector.
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Disclaimer: This post was for educational purposes only, and all the information contained within this post is not to be considered as advice or a recommendation of any kind. If you require advice or assistance please seek a licensed professional who can provide these services.
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