Lower profit expectations bearish for Intel prices
Intel Corporation lowered its profit growth forecast for 2020-23. Will the Intel Corp price continue declining?
Intel Corporation’s shares declined 2.5% on Wednesday after the chip maker forecast modest profit growth over the next three years. The company forecast to have just 28% market share by 2023, or about $85 billion in sales in a $300 billion market for the chips it makes. Two weeks earlier the stock fell more than 7% after the company said it expected full year revenue of $69.0 billion, a decline from $70.8 billion in 2018. It would be the company's first revenue drop since 2015. Stock price tumbled despite the fact that company's first-quarter earnings exceeded forecasts: $0.89 cents instead of $0.87 per share. Lower revenue estimate is bearish for Intel stock price.
On the daily timeframe the S-INTC: D1 has breached below the 200-day moving average MA(200) and Fibonacci 61.8. This is bearish.
Technical Analysis Summary
Position Sell
Sell stop Below 46.04
Stop loss Above 51.79
Intel Corporation lowered its profit growth forecast for 2020-23. Will the Intel Corp price continue declining?
Intel Corporation’s shares declined 2.5% on Wednesday after the chip maker forecast modest profit growth over the next three years. The company forecast to have just 28% market share by 2023, or about $85 billion in sales in a $300 billion market for the chips it makes. Two weeks earlier the stock fell more than 7% after the company said it expected full year revenue of $69.0 billion, a decline from $70.8 billion in 2018. It would be the company's first revenue drop since 2015. Stock price tumbled despite the fact that company's first-quarter earnings exceeded forecasts: $0.89 cents instead of $0.87 per share. Lower revenue estimate is bearish for Intel stock price.
On the daily timeframe the S-INTC: D1 has breached below the 200-day moving average MA(200) and Fibonacci 61.8. This is bearish.
- The Parabolic indicator gives a sell signal.
- The Donchian channel indicates downtrend: it is tilted lower.
- The MACD indicator gives a bearish signal: it is below the signal line and the gap is widening.
- The RSI oscillator is falling but has not breached into the oversold zone yet.
Technical Analysis Summary
Position Sell
Sell stop Below 46.04
Stop loss Above 51.79