Intel has seen significant pressure on Monday, as there are a whole host of reasons for negativity.
INTEL
Intel has seen significant pressure during the trading session on Monday as the market is digesting, mounting concerns over its Foundry Segment execution. While the company recently highlighted its 18A process node as a pivotal recovery catalyst, high profile reports of manufacturing delays and a lack of confirmed anchor customers for its 2026 rollout are weighing heavily on sentiment in this market.
Furthermore, the broader tone of risk aversion in the tech sector, as well as pretty much everything else on Monday, following last week's $850 billion wipeout in the Magnificent 7 is starting to really weigh upon this market. That being said, the high capital expenditure and low margin turnaround play is still something that traders may look to, but we may have to bring a bit more value into the market.
EARNINGS CATALYSTS AND TECHNICAL SUPPORT
There is a little bit of psychological support at the $41 level but judging by the action during the day on Monday, it's very likely that we will revisit the 200-day EMA. The April 23rd earnings report will be very interesting to see how things play out with their guidance is on its Foundry Segment and whether or not they are starting to meet expectations.
That being said, part of what's going on during the Monday session is just simply rates rising and a lot of fear as headlines out of the Middle East aren't exactly screaming that we are going to enter a peaceful phase. With this, I think Intel remains very noisy and I think it remains somewhat negative in the short term, but I do look at this as a potential turnaround play.
We are in the process, however, during the day on Monday of breaking down through the bottom of what looks like a descending triangle. If that descending triangle proves itself to be viable, we could see this market return to the $33 level.