The 3% decline in Intel (INTC) on Friday down to $46.10 level, closed the most recent gap on the daily chart. But shares of Intel (INTC) had been fading even before Friday’s sharp pullback. While the 50 day moving average is just about a buck lower and it could supply some near term support, the October gap is still unfilled and looms down at the $41 level.
The stochastics oscillator has made a bearish crossover out of the overbought zone, reflecting the loss of positive momentum last month. Chaikin money flow crossed below its 21 period signal average and is headed into negative territory. This is money flow confirmation of the downside price momentum.
There could be a reflexive bounce in the broader market this week which could stabilize Intel shares. Watch the confluence of 20 day and 50 day moving averages and gap low support, just above the $45 level.
But if that area is breached the October gap would be the next logical zone of support.