INTC's recent price action has triggered a bearish technical setup, with the stock poised to drop to $85 within the next 90 days. The death cross, overbought RSI, and negative MACD all point to a downtrend that may not be over yet.
The death cross, where the 20-day SMA ($114.3895) has fallen below the 50-day SMA ($116.4172), is a clear indication of a downtrend. The overbought RSI (71.9) suggests that momentum may be exhausted, and the negative MACD (-5.2612) adds to the bearish pressure. The price is also trading below both moving averages, further confirming the downtrend. The wide swings in price, as indicated by the high volatility (ATR 7.85% of price), suggest that the stock is ripe for a significant move.
INTC will drop to $85 within the next 90 days. This scenario is driven by the bearish technical setup, including the death cross, overbought RSI, and negative MACD. The stock will likely break below the support level of $89.59, which is 12.7% below the current price.
A bullish reversal, where the price breaks above the 50-day SMA and the RSI falls below 30, would invalidate this prediction. Additionally, if the stock fails to break below the support level of $89.59, this would also undermine the bearish scenario.
We will revisit this prediction and publish a follow-up on this date.