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.

See Also: Intel Kickstarts Autonomous Engine, To Buy Mobileye For $15 Billion

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.