Without a doubt, technology stocks have been leading the market lower as of late. And within the technology
arena, semiconductors have been particularly weak. Take Intel Corp.
(NASDAQ:INTC), for instance. The big tech titan is trading 15% below its 20-week moving average and down almost 30% from its spring highs.
Granted, PCs are getting some gray hairs and there is some uncertainty here, but I am a technical swing trader
. So I’m not going to make a huge fundamental pitch here (although one likely can be made).
My sole interest in Intel stock is for a swing trade. On Friday, Intel recorded a perfected weekly DeMark buy set-up 9, increasing the probability of a corrective bounce higher sometime over the next four weeks. Note that the chart below is a weekly chart, so it requires a wider lens for analysis, and maybe a bit more patience, as oversold can remain oversold longer than one thinks.
I built a 1/3 size starter position during the intense selling Thursday and Friday for an average price of $21.54. I will look to add on further downside towards $20, with a stop just beneath the $20 level.
Trade safe, trade disciplined.
Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.
No positions in stocks mentioned.
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