Shares of Intel Corp (INTC) are a sell into earnings because of pretty basic technical analysis. First, the stock is extremely extended in the near term, having rallied from $44.50 in August 2019 to its current $63.68 high today. However, while that move is insane it does not directly give a sell signal. The metric you want to take note of is the channel. Price has tagged the high end of the channel heading into earnings and this has been a sell signal every time. In addition, while all the past hits of this upper channel line have been sell signals, Intel Corp is the most extended it has ever been for this hit.
This alone screams a pull back coming and is why it is a sell into earnings. Look for the stock to drop on and after earnings back to $59.50 near-term. Investors and swing traders can take advantage of this by shorting the stock or buying puts.
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