close icon

Intel ‘s Troubles Fit in its Elliott Wave Correction

2020 is shaping up as a year to forget for Intel shareholders. The stock is down over 20% year-to-date. First, the coronavirus selloff caused a 35% plunge down to less than $44 a share. And just when it seemed INTC was recovering, the company announced it will delay its 7nm products until late 2022 or early 2023. The shares took another hard hit as a result.

What is interesting is that both declines seemed to have occurred exactly when they had to. From an Elliott Wave point of view, if it wasn’t for COVID-19 and the 7nm delay, something else was going to drag Intel down. That is because, as the chart below shows, the stock was due for a correction anyway.

Elliott Wave correction in progress for Intel stock

The weekly chart of Intel stock reveals that the entire uptrend from $12.05 in February 2009 is a five-wave impulse pattern. It is labeled I-II-III-IV-V, where the five sub-waves of waves III and 3 of III are also visible.

According to the theory, a three-wave correction in the opposite direction follows every impulse. And indeed, the decline from $69.29 is already starting to look like a simple A-B-C zigzag retracement. Wave A corresponds to the COVID-19 crash, while wave C was triggered by the 7nm production delay.

Wave C is supposed to breach the bottom of wave A, meaning Intel can fall to $40 or lower. Once there, however, the 5-3 wave cycle from the 2009 bottom would be complete. The trend can then be expected to resume in the direction of the impulsive pattern. Instead of giving up on Intel, investors should think about taking advantage of its current weakness.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

LKQ Stock On the Verge of Doubling Yet Again

The first and only time we wrote about LKQ Corporation was in late-September, 2020. The stock had just doubled from its coronavirus plunge and was hovering around $27. Despite the recent strength, however, we thought the shares still present a good investment. In a time of crisis one cannot rely on charts alone, so the…

Read More »

Tencent to Start Rising Amid China’s Tech Crackdown

Stocks of China’s tech giants have been falling for months as the country’s crackdown on the industry spooked investors. After Alibaba was slapped with the biggest antitrust fine in China’s history, risks increased that regulators are not done with Tencent despite its own $1.5B fine. As a result, the stock fell from its February 2021…

Read More »

Tesla ‘s Bubble Appears to Be Bursting at Last

Our previous article about Tesla stock, published November 17th, 2020, called for a surge to ~$600, followed by a major bearish reversal. We thought TSLA was then rising in wave 5. A new all-time high was supposed to occur, but since fifth waves conclude every impulse, we opined the bears would be eager to return.…

Read More »

Etsy Aims for $300 Before Bears Cut the Stock in Half

The last time we wrote about Etsy was on January 18th, 2019. The stock was trading close to $54 a share and was up a staggering 803% from its January 2016 low. Etsy’s profits could not possibly justify its then $6.6B market cap, but with sales growing so rapidly, some people were already comparing it…

Read More »

NovoCure to Shed Another 40% After Today’s 15%

Founded in 2000, NovoCure develops treatment for tumors using specific frequencies to disrupt cancer cell division. The company went public in 2015 and, after a disappointing 2016, has been making investors very happy ever since. On the other hand, the stock is down over 15% today despite positive TTFields liver cancer study results. Normally, an…

Read More »

Essex Property to Lose Half After Reaching New Record

Essex Property saw its stock price drop to as low as $176 during 2020’s Covid selloff. From the October 2019 all-time high of $334, that was a 47.3% total decline in less than five months. Fast-forward to today, it feels as if 2020 was just a bad dream. The stock is hovering around $307 right…

Read More »

Cathie Wood’s ARK to Add 40% Before Turning South

In the twelve months between the Covid crash bottom in March 2020 and February 2021, the ARK Innovation ETF returned 385%. Bold bets on disruptive and promising, yet still money-losing companies turned fund manager Cathie Wood into an investing superstar. However, after the fund’s staggering surge from just $33 to nearly $160 a share, it…

Read More »

More analyses