Dogs of the Dow to Sell: Intel (INTC)
Click to Enlarge Like the Dow Jones, chipmaker Intel (INTC) has fallen to rest on its 50-day moving average — a level that it hasn’t breached in a meaningful way since January’s market selloff driven by fears over emerging markets.
INTC has been struggling since early April, which is when the overall semiconductor sector started to underperform the broad market to an extent not seen since the October-January period.
With the percentage price oscillator indicator about to drop into negative territory, I’m looking for a downside break of the 50-day MA with a price target on the 200-day moving average near $24 — which would be worth a near 8% drop from current levels.
I recommended the May $27 INTC puts to my Edge Pro clients earlier this month, which ended with a near 30% gain.