Intel (INTC) shares broke above their $36.50 level in September and soared 28% in just under two months. The run has been impressive and on strong volume and positive money flow. But a pullback may be underway.
The daily chart shows Intel’s incredible move higher and the wide gap that it left behind. Shares been rolling over this week and are down nearly 2% today. Volume has come off this month but money flow readings are still good.
The question is how low can a pullback go? It is speculation at this point, of course, but the only pure techical level is back down to, at least the top of the gap. The reversion off the primary moving averages is severe and this level of pullback would probably wash out weak hands, and ultimately be healthy for the stock.