Intel (INTC) Stumbles Amid Tech Stock Sell-off... $85 Support Level Also at Risk

▲ Intel (INTC), Bear Market/AI Generated Image

Intel (Intel, INTC) fell 2.94% in pre-market trading, pushing it towards the $85 support level.

According to Benzinga on September 1 (local time), Intel's decline was more aligned with a broader sell-off in the U.S. stock market than individual negative news. Nasdaq futures fell 1.37%, and S&P 500 futures fell 0.71%. Intel also continued its correction from its high recorded in June, falling below all short-term moving averages.

Technical trends show mixed signals for the long and short term. Intel maintained a level 18.7% higher than its 200-day simple moving average of $73.04. However, it is 9.5% lower than its 20-day simple moving average of $95.79 and 16.7% lower than its 50-day simple moving average of $104.03. The 20-day moving average also remained below the 50-day moving average, indicating a bearish mid-term trend.

Buying momentum also weakened. The Moving Average Convergence Divergence (MACD) fell below its signal line, and the histogram turned negative. Intel rose to a 52-week high of $142.35 in June but fell below key support levels in July. Benzinga assessed the current decline as a correction following a strong rally rather than a complete reversal of the long-term uptrend. However, it presented $85 as a key support level.

Wall Street's views are mixed. The market's average investment opinion for Intel is 'Hold', with an average target price of $110. Bank of America Securities maintained its 'Buy' rating on August 12 but lowered its target price to $145. UBS maintained a 'Neutral' rating and lowered its target price to $112. Benzinga's momentum score remained high at 98.51.

[Article Key Summary]

-Intel fell 2.94% in pre-market trading amid a broad weakness in U.S. tech stocks.

-The stock fell below its 20-day and 50-day moving averages, with $85 presented as a key support level.

-Wall Street's average target price is $110; the long-term uptrend remained intact, but short-term buying momentum weakened.

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