Signal Says, Buy the Dip on Intel Stock

The equity recently touched a five-year low

Aug 18, 2022 at 10:55 AM
facebook X logo linkedin


This commentary first appeared on Forbes Great Speculations, where Schaeffer's Investment Research is a regular contributor.

Semiconductor concern Intel Corporation (NASDAQ:INTC) is underperforming on the charts, and now sits 31.3% lower in 2022.  A late-July bear gap saw the shares breech the 30-day moving average, and touch a roughly five-year low of $34.40 on Aug. 9. However, INTC could soon stage a bounce, as it’s now flashing a historically bullish signal.

INTC Chart August 17

Specifically, Intel stock's latest rut comes amid historically low implied volatility (IV), which has been a bullish combination for the security in the past. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been four other times over the past five years when the stock was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) was in the 20th percentile of its annual range or lower.

This is now the case with INTC's SVI of 28%, which stands in the 37th percentile of its 12-month range. According to White’s data, the security averaged a one-month gain of 9.52% after each of these signals. With the shares currently trading around $35.46, a similar pop would put the equity around $38.84 – back above its aforementioned bear gap.

It's also worth noting that Intel stock’s 14-day Relative Strength Index (RSI) of 29.5 sits in “oversold” territory. This means the shares are overdue for a short-term bounce.

An unwinding of pessimism amongst the brokerage bunch could also help INTC move higher on the charts. Of the 21 analysts in coverage, 19 carry a “hold” or worse rating on the security, while just two say “buy” or better.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI