Intel (INTC): Time to rebound???

[psico]

This is what I wrote in my blog this weekend about Intel:

AS I jot down last January 3, 2008, Intel was breaking ths lower trendline of its ascending channel. So, a first objective was a drop to 22$ (support level). Well, stock price has closed just in 21,99$...

Now, we can expect a new drop to reach the lower trendline of another ascending channel formed last year (June). At this level, we can expect a rebound. But if this lower trendline is broken again, stock price will fall to 20$. Be careful too!!

[optradersc]

Funny thing is a chart will tell only so much about a stock, in this case INTC. What you are missing here is how fund traders and investors feel about INTC. From my readings, even at this low level, traders expect INTC to beat $0.40 in its earning report tomorrow afternoon. Options are geared towards the call side and short interest has decreased to a minimal. At this point, any news is bad news for INTC and will confirm as slow down taking out investors who have been crossing their fingers for a great quarter. Odds are 2 to 1 that INTC will fall. I can take those odds a take my loss anyday. There's just too much optimism in INTC. The only chance INTC has is if it reports earnings of $0.42 or higher with guidance for next Quarter that also beats estimate. In fact, I am looking to buy INTC puts ahead of this earning report.

[Stocktrading101]

Nice chart, Intel had a nice move today with the market to close back above $23. Jack is a big bull of Intel in this price range and I agree with him on the long view of things.

I was not aware of earnings tomorrow, very curious to see how this pans out for the stock. Thanks for mentioning that optradersc.

[llamagatekeeper]

Currently I have mixed feelings on Intel. They have been brought to court for anti-competetion I believe in the EU correct me if I'm wrong. But, then again their only competetion lies with AMD who have overpaid their CEO and have under performed including their latest "tri-cores" and Intel in my opinion has too much market share to be taken down. So, for me I would wait on Intel until more news comes out about their monopoly junk gets cleared up, because they don't have nearly the cash sitting around that Microsoft does to settle their disputes with the EU. But, that is another story...I could see Intel hitting $30 by July of this year.

[optradersc]

OUCH, but none the less this drop was expected as I noted the bullish bets on INTC ahead of this report. On that note, I bought 30 contracts of INTC Jan. 22.5 puts $0.55, and it only cost me $1695. Not a bad risk as I hope it hits $20 tomorrow morning and I can get out at $6000. Good luck to all.