Leading semiconductor stock, Intel Corp (INTC), has recently plunged lower after reporting earnings. Prior to the earnings announcement the stock was trading around $61.00 a share level. Today, INTC stock is trading around $49.70 a share. The stock is now trading sharply below its 50 and 200-day moving averages. Traders should note that this puts the stock in a weak technical position on the charts. This will often lead to further declines for the stock in the near term.
Traders and investors should now watch the $43.00 level for major chart support. This important support area is where the stock was defended in October 2018 and May 2019 before breaking out to news highs. Often, prior pivot lows will be solid support levels when they are retested. This is where the institutional crowd will generally defend an equity after a major correction.