Next “Old Tech” Shoe to Drop?
Intel last week registered yet another dud of an earnings reaction with now its last 3 basically all producing double-digit losses. The stock is now a whopping 60% off its annual peak made at the very round 50 number last December. On its WEEKLY chart give it credit for doubling in PRICE in 2023, but this name is a fraction of its old self (it gave a brief thrill when it broke ABOVE a bear flag several weeks ago but it was shortlived). Round number theory is coming into play at the 20 figure but I would not touch this one with a 10 foot pole. Former Dow Jones “Industrials” peer CSCO could be the next to undergo a substantial negative trend change. The WEEKLY chart below shows the name nearing a bearish head and shoulder pivot. It is now in “bear market” mode more than 20% off its most recent 52-week highs and its daily chart here completed a 3 black crows pattern and this is now well below both a downward sloping 50 and 200-day SMA. These two names are dead weight on the Dow, but being such low PRICED stocks (VZ is the only other name in the PRICE weighted index to be a lower PRICED name) is not having a strong impact on the widely followed benchmark.