Intel Moving in Bearish Divergence to Semiconductor ETF

By | August 22, 2017

Intel (INTC) shares continued lower on a strong up day in the broader market. The stock has pierced below both its 200 day and 50 day moving averages, but is approaching support in the $34.50 area. If it fails, the next level of support is in the $33 area at the 2017 and 2016 lows.
Chaikin money flow is moving below its centerline reflecting increasing selling pressure, and the relative strength index is tracking lower and below its centerline.
The price action in Intel today is in sharp contrast to the broader semiconductor space.

The VanEck Vectors Semiconductor ETF (SMH) is up today and holding above the uptrend line of a rising wedge formation and its 50 day moving average. A breakout from this pattern projects significantly higher prices.

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