Is it Safe to Buy Intel Now?
The semiconductor maker has had a rough year but investors wonder if this is a chance to buy low.
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Shares of semiconductor maker Intel INTC have had a rough year. INTC reached a zenith in late December and 2024 has been downhill so far. A subscriber asked whether the worst is behind INTC and if they can buy it here at its lowest price since around 2009.
Let's check the charts for some answers.
In this daily bar chart of INTC below, I can see a bumpy ride lower with a big dive lower this month. Not pretty. Prices are trading well below the declining 50-day moving average line and the negatively sloped 200-day moving average line. The daily On-Balance-Volume (OBV) line has been weak since April and the Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory.
In this weekly Japanese candlestick chart of INTC below, I see a very weak pattern or setup. Prices are in a longer-term decline and trade below the bearish 40-week moving average line. The weekly OBV line is bearish and so is the MACD oscillator. The latest candles are not a bottom reversal pattern and we have yet to see long lower shadows to tell us that traders are rejecting the lows.
In this daily Point and Figure chart of INTC below, I can see some stabilization and a potential upside price target in the $22 area.
In this weekly Point and Figure chart of INTC below, the software is giving us a price target around $2. Probably way too bearish but you never know. Remember that Point and Figure charts ignore volume and time.
Bottom line strategy: INTC could make a small bounce to $22 or so, but it does not move the needle. The risk is that another shoe could fall and prices could head still lower.
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