Intel stock price on a monthly basis seems to be in a downtrend since 2021. The current shows that intel price is stuck in the consolidation zone and has reached minor support of $28.70.
The major support for Intel stock resides at $25 level which has held price several times in the past. Let’s look at the reasons that led to the downfall of the world’s largest chipmaker, INTEL.
Major reasons for downfall were delay in manufacturing, failure to enter in the mobile chip market, losing market share in the PC and data centre segment to competitors. As of May 2023, the AMD market has surpassed the INTEL market by a huge difference.
Current market capitalization of INTEL is $121.27 Billion while AMD market capitalization is $153.40 Billion. Intel has faced severe challenges in production due to the fact that the company designs and manufactures its own chips.
Earning Reports of INTEL Fluctuated Price
On January 26, Intel reported its earnings which were dismal, causing the price to fall further causing a loss of almost 9% in a day. If intel price breaks below $28, there is a high probability the price might move downwards to $25 level. While on the other hand, if bulls are able to push prices above annual highs of $33.20, there is higher probability for the price to reach $35 level. The large stake of intel corporation is held by large institutional traders which makes it vulnerable to their decision. Top 25 shareholders own 39% of the company. General public holds nearly about 38.3% shares.
Will INTC price fall to $25 level?
INTC price trades below 20,50,100 and 200-day EMA indicating bearish momentum in the price. The price needs to rise above 200-day EMA for a trend reversal. RSI trades at 40.24 struggling to rise above the 50 mark.
Chaikin money flow score is -0.35 indicating strong weakness in the market. The CMF score has not been above 0 since mid of April. Intel stock price resides near the lower band of bollinger and hasn’t shown any signs of pullback or reversal.
Conclusion:
Technical parameters indicate that there might be a break of $28.70 in upcoming days and all the major indicators are highly bearish for Intel Corporation. If bulls are able to defend the support and there is an increase in bullish momentum, price might retest the highs of $32.
Gross profit margin, which is a key metric in chip companies , dropped to 38.4% from 53.1% a year ago as Intel incurred losses to build out its foundry business. The current gross profit margin is 38.54% showing growth.
Technical levels:
Major support: $28.70 and $25
Major resistance: $32 and $33.20
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/05/13/intel-stock-price-prediction-intc-price-gains-bearish-momentum/