US chip maker securities Intel suffered a massive drop in after-hours trading and the presentation of the quarterly figures, even though the fundamentals were comparatively good and the analysts’ estimates were exceeded. True to the motto: Sell on good news.
The corona crisis reveals light and shadow to numerous companies. Technology groups are clearly among the winners. It is sufficient to take a look at Alphabet and Amazon, for example. But also Intel has been one of the profiteers of the past few months and has clearly exceeded expectations for the last quarter. The company reported earnings per share of $ 1.23 in the second quarter, above analyst estimates of $ 1.11. Revenue rose to $ 19.7 billion, with only $ 18.55 billion expected. After the exchange, however, there was a sharp price slide of around 10 percent.
Noted from a technical point of view Intel still in an intact downward trend since the beginning of this year. The fluctuation zone between the 200-day average and the downtrend line can be regarded as neutral in the short term. Bulls continue to have options to break out sooner than the current downtrend, despite the expected discounts at the start of trading.
Light and shadow
As mentioned earlier, the range between $ 57.77 and around $ 63.50 can be viewed as a neutral trading range in the short term. A breakout and associated buy signal can only be activated above $ 64.00. Then gains at $ 65.94 and finally the annual highs at $ 69.29 would be conceivable. Should Intel however, if it sank below $ 56.50 sustainably, the impression of an SKS formation would inevitably arise. A possible scenario in this case would be a reset to the underlying support level of around $ 53.00. Among them, discounts would even have to be budgeted at $ 50.00.
- Resistances: 61.25; 62.00; 62.68; 63.50; 64.00; $ 65.11
- Supports: 58.40; 57.77; 56.76; 56.10; 55.13; $ 53.85
Intel in US dollars daily chart; 1 candle = 1 day (log. Candle chart)
Viewing period: 18.10.2019 – 07/23/2020. Historical considerations are not reliable indicators of future developments. Source: tradingdesk.onemarkets.de/underlying/US4581401001
Intel in US dollars in weekly chart; 1 candle = 1 week (log. Candle chart)
Observation period: 13.07.2015 – 23.07.2020. Historical considerations are not reliable indicators of future developments. Source: tradingdesk.onemarkets.de/underlying/US4581401001
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The Contribution Intel – Reset after strong numbers! first appeared on onemarket’s blog (HypoVereinsbank – UniCredit Bank AG).