Intel Corp. (NASDAQ:INTC) stock fell nearly 3% in Tuesday’s premarket trading. The decline came as investors turned defensive ahead of the opening bell. Nasdaq futures dropped 1.37%, while S&P 500 futures fell 0.71%.
Intel appears caught in a broader market selloff rather than a company-specific decline. The stock is also pulling back from its June swing high.
As a result, traders may remain cautious until Intel retakes key moving averages. Investors are also watching whether the stock can hold nearby support.
Technical Analysis
Intel’s technical picture remains mixed. The stock is 18.7% above its 200-day simple moving average of $73.04. However, it trades 9.5% below its 20-day SMA of $95.79 and 16.7% below its 50-day SMA of $104.03.
In addition, the 20-day SMA remains below the 50-day SMA. That signals weakness in the intermediate trend, although the longer-term uptrend remains intact.
Momentum has also cooled. The moving average convergence divergence indicator is below its signal line, while the histogram is negative. This suggests that buying pressure is fading.
Intel reached a 52-week high of $142.35 in June. It then recorded a swing low and broke below support in July. Therefore, former support levels could now limit any rebound.
The current decline still resembles a pullback after a strong rally rather than a complete trend reversal. However, Intel must hold its key support level.
- Key support: $85. This level could serve as a line in the sand as Intel trades below its short-term moving averages.
Analyst Outlook
Intel carries a consensus Hold rating. The stock has an average price forecast of $110. Recent analyst actions include:
- Bank of America Securities: Maintained a Buy rating and lowered its price forecast to $145 on Aug. 12.
- UBS: Maintained a Neutral rating and lowered its price forecast to $112 on Aug. 12.
- Bank of America Securities: Maintained a Buy rating and a $160 price forecast on July 28.
Benzinga Edge Rankings
Intel has a bullish Momentum score of 98.51 on the Benzinga Edge scorecard. Therefore, the stock remains a momentum leader despite its recent pullback.
However, the signal relies heavily on momentum rather than a balanced mix of factors. Bulls will watch whether Intel can defend $85 and retake its 20-day and 50-day moving averages.
Top ETF Exposure
- iShares Semiconductor ETF (NASDAQ:SOXX): 5.53% weighting
- State Street SPDR NYSE Technology ETF (NYSE:XNTK): 5.86% weighting
- REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI): 6.50% weighting
Intel’s sizable weight in these funds could expose the stock to additional buying or selling as ETF flows change.
Price Action
Intel shares fell 2.94% to $86.88 in Tuesday’s premarket trading, according to Benzinga Pro.
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