The headlines this morning are screaming about Intel (INTC) dropping over 10% to $47.29 on earnings. The retail crowd is panicking, selling into the hole, and wondering what went wrong. But if you are a disciplined technical trader, you aren’t panic selling, you are preparing your buy orders.
This flush is exactly what we needed to reset the chart and offer a high-probability entry for swing traders.
Why the drop happened (The setup)
Before we talk about where to buy, we have to understand why it fell. Look at the white ascending trendlines on the daily chart labeled Major Resistance. Intel rallied right into this wall just before the news. The charts told us the stock was overextended and hitting a ceiling. The earnings report was simply the excuse the market needed to cool off.
The buy zones: Let the trade come to you
I am not chasing the stock here. I am waiting for price to hit major structural support. I have identified two specific levels where the probabilities favor a strong bounce.
- Buy Target 1: $44.00 (The Aggressive Entry For A Day Trade). This level is marked by the orange horizontal line on my chart. This is a classic “pivot point”—a level that acted as a ceiling in the past and should now act as a floor. It is also a gap fill. A drop to $44.00 would represent a significant wash-out of weak hands. Day traders can look for a reaction here for a quick bounce back up.
- Buy Target 2: $42.00. This is the level I am most excited about. The yellow ascending trendline connects perfectly from the August lows, acting as the backbone of this entire uptrend. If Intel flushes down to $42.00, it hits this major trendline support. This is where the institutional “Smart Money” often steps in to defend the trend. It offers the best risk-reward for a multi-week swing trade.
Do not let the sea of red scare you. In trading, we make our money when we buy fear at support. Intel is resetting. Watch $44.00 closely, but keep your powder dry for $42.00. That is where the real opportunity lies.
Source: https://www.fxstreet.com/news/intel-intc-earnings-flush-where-smart-money-is-looking-to-buy-202601231443
