Intel Stock's Downward Spiral: Can Q2 Earnings Spark A Reversal?

Intel Corp INTC will be reporting its second-quarter earnings Thursday. Wall Street expects 10 cents in EPS and $12.94 billion in revenues as the company reports after market hours.

The stock is down 14.06% over the past year, -38.83% YTD.

Let’s look at what the charts indicate for Intel stock, and how the stock currently maps against Wall Street estimates.

Intel Stock Trend Strongly Bearish Ahead Of Q2 Earnings 

Intel stock is currently in a strongly bearish trend. Its share price of $30.74 sits below the 5, 20, and 50-day exponential moving averages. Despite this downward trend, the buying pressure observed suggests a positive outlook for potential future bullish movement.

Chart created using Benzinga Pro

Currently, Intel's stock is facing resistance. It falls below the eight-day simple moving average (SMA) of $31.19, indicating a bearish signal. This trend continues with the 20-day SMA at $32.87 and the 50-day SMA at $31.59. Both reinforce a bearish sentiment for the stock.

The 200-day SMA, positioned at $38.65, further highlights the existing downward trend, creating another bearish signal.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator stands at -0.36, underscoring the prevailing bearish sentiment. However, with a Relative Strength Index (RSI) of 40.62, Intel appears to be near the oversold territory, suggesting that the stock may be undervalued and could attract bullish investors looking for entry points.

The Bollinger Bands (25), ranging from $29.23 to $35.74, indicate a continued bearish stance. While the technical indicators predominantly reflect a bearish trend, the underlying buying pressure hints at potential bullish opportunities if the current downward pressure is alleviated.

Read Also: Intel Plans Job Cuts To Fund Turnaround Efforts: Bloomberg

Intel Analysts See 13% Upside

Intel Ratings & Consensus Estimates: The consensus analyst rating on Intel stock stands at a Neutral currently with a price target of $39.82. Recent analyst ratings from Cantor Fitzgerald, Jefferies, and Goldman Sachs suggest a 13.36% upside for Intel stock with an average price target of $34.67.

INTC Price Action: Intel stock was trading at $30.55 at the time of publication.

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