Semiconductor Giant Intel Is Too Cheap To Ignore

Intel (INTC) ended Tuesday, March 15 at $44.81, just below its monthly pivot for March at $44.97. This was a buying opportunity as its quarterly pivot is $49.48. Longer term the annual risky level is $65.77. President Biden recently indicated that he plans to spend $52 billion in U.S. semiconductor manufacturing.

Intel is fundamentally cheap. Its p/e ratio is just 8.38% and the company offers a generous dividend of 3.19%, according to Macrotrends. The semiconductor giant beat earnings-per-share estimates in 32 consecutive quarters.

The Daily Chart for Intel

Shares of Intel traded as low as $43.61 on October 30, 2020. This was a positive key reversal buy signal as the day’s close was above the prior day’s high. The bull market from this low reached $68.49 on April 12, 2021. The gain was 57%.

April 12, 2021 was a negative key reversal sell signal as the day’s close was below the prior day’s low. The 2022 low of $43.63 was set on February 24. The bear market decline from the $68.49 high to this low was 36.2%.

On February 16, 2021, there was a golden cross when the 50-day simple moving average rose above the 200-day simple moving average. On August 11, 2021, there was a death cross when the 50-day SMA declined below the 200-day SMA.

The two horizontal lines at the top of the graph are the annual and semiannual risky levels at $65.77 and $68.82, respectively. The two horizontal lines at the low portion of the graph are the monthly and quarterly pivots at $44.97 and $49.48, respectively.

The Weekly Chart for Intel

The weekly chart for Intel is negative with the stock below its five-week modified moving average at $47.64. It’s also below its 200-week simple moving average or reversion to the mean at $52.87.

The 12x3x3 weekly slow stochastic reading is dipping to 24.73 this week, down from 25.28 last week. This statistic ranges between 00.00 and 100.00 with a reading above 80.00 overbought and a reading below 20.00 oversold.

Trading Strategy: Buy Intel on weakness to its monthly pivot at $44.97. Aggressive traders can reduce holdings on strength to its quarterly pivot at $49.48. Longer-term investors should reduce holdings on strength to the 200-week simple moving average at $52.87.