Intel Under Selling Pressure After Mobileye Deal

Intel Corporation INTC shares are trading lower by $0.76 at $35.15 in Monday's session. The catalyst for the decline is the announcement that the company will purchase Mobileye MBLY for $63.54 per share in cash.

It's not that surprising as many acquirers after a fairly large purchase a company will being under some selling pressure. The reasons being shareholders will deliberate the merits of the deal's long-term impact on the performance of the acquirer.

Off the open, Intel's stock seemed to have little impact as the issue opened flat. However, its attempt to rally ended just above Friday closing price of $35.91 at $36.04.

From that level, it has continued to make new lows for the session, with the current one standing at $35.01, which is just below its current price.

On the downside, there is one significant support level may came into play, its February 10 low ($34.84). That represents its lowest level since the issue reached a 16-year high on January 27 ($38.45). That high came one day after its Q4 beat for earnings and revenues.