Intel Corporation (INTC) Technical Analysis March 2020

Monthly Chart

The monthly chart shows Intel Corporation (INTC) forming a flag pattern over a 19 month period from June 2018 to October 2019 after which it broke up to reach the technical target price (TP) of around $70.

INTC has since retreated to the previous resistance-turned-support area of $55.

Weekly Chart

Whether the $55 support will hold or not cannot be determined yet on the weekly chart.

The Directional Movement Index (DMI) shows a preceding uptrend which may be retracing as shown by the down sloping ADX (black line) and converging +DI (green line) and -DI (red line).

Although in the long term INTC is still in bullish mode, in the shorter time frame, it may retrace further towards the $45 area, consolidate and find new support before deciding on a direction.

Daily Chart

The daily chart though shows the 200 period moving average (MA200) supporting the current price at the structural support of $55. This would make this level a strong support area.

Failure to maintain the $55 level though may see prices seek the $45 level which is the next technical support area.

As of market close on Friday 6th of March 2020, INTC seems to have broken down from the flag pattern formed on the back of a downtrend. The DMI also seems to be supporting a downtrend with the -DI above and +DI below and both diverging from the other. The fall though was cut short by the MA200 and the $55 support area.

Should the support hold, INTC may trade upwards again or sideways before deciding on a direction. Should the $55 support fail, the price may head towards $44.

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