Updated

INTC - Buy the Dip?

Potential to buy the dip trade in INTC post Q3 earnings if the 1y low around USD 45 holds true.

Spot Price USD 46.29
Limit Price USD 45.00
Stop Loss USD 41.50
Take Profit USD 55.50
R/R ratio 3:1

Rationale:

Fell through initial support at USD 48 post Q3 earnings
USD 45 marks 1 year low, i.e. strong support level
Tends to trade range bound in a USD 8-9 channel between earnings seasons
Analyst target price USD 53.73
MACD has turned negative and a reversal before engaging in a trade would deliver additional support

Conclusion
No intention to hold a longer term position in the stock unless the underlying fundamentals in the stock show a pivoting shift
Patience before engaging in this trade will be key

Note

We've seen three consecutive gaps lower, reinforcing the negative pressure on the stock. The March 2020 have yet to be tested.

Confirmed support at these level would make me a confident buyer of the stock, probably through selling some short term puts.

Upside target remains unchanged.

Note

Selling pressure on the stock seems to sooth somewhat and the stock held up relatively well in the Oct-29 sell off.

Now trading just shy of its March low at $43.63 which is also within a few cents of its long term low at $42.80 in May 2019.

It seems that around these levels there is solid buying interest.

Likely to engage in short put position around these historical levels as I expect the stock to hold these supports.

Breaking above the $48.80 levels to me would indicate a buying opportunity.

Trade active

Price seems to bottom out. Pickup was lagging the overall tech rally over the past days as attention turnes mostly to highlight stocks such as the FAANG.

Position opened on a JAN 21 50 C

SLRK

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

SLRK

Also on: