INTC: Big downside reversal post earnings

We recently highlighted in this blog the potential for a bullish breakout in Intel (INTC) above the 51 area, but a disappointing earnings release has since driven the stock lower. We also suggested that 47.00 was an important tactical risk-management (stop) level, which INTC broke. Prior to this bearish turn, both the volume advance decline and on-balance-volume indicators confirmed INTC's rally.

The stock tests chart support defined by the December and October 2025 highs in the 44.02–42.48 range, with rising 26- and 40-day moving averages at 42.05-41.34. This zone is backed up by the 61.8% retracement of the late December into late January rally at 42.45 and the 38.2% retracement of the April 2025 to January 2026 advance at 40.49.

If INTC can bounce from current levels, the big post-earnings downside gap from 48.13 up to 53.08 could provide an overhang.

If nearby support breaks, then INTC shows deeper risk to the 50% retracement and late December low at 36.13-34.95.

In summary, INTC has reversed lower to invalidate the potential bullish breakout highlighted in last week's blog post. While the stock could bounce from support, the big downside gap could provide an overhang on tactical upside.

Chart 1: Intel (INTC) (top), volume advance decline (center), and on-balance-volume (bottom): Daily chart