Intel ($INTC) Weak

Intel ($INTC) has been unable to garner any strength to the upside since the end of January. Since the stock broke $35, it has been in a range of $34.5-$33.5 and has been under-performing compared to large-cap indices like the S&P 500 ($SPY).

If you take a look at Tradespoon Seasonality Chart there is resistance for the next ten days at $35, and a downside target of $31.50, if the stock ($INTC) breaks $33.5.

In the short-term we have a conviction that the stock could be lower. The probability of that occurring is right around 100 percent, with 96 percent accuracy.

Implied volatility is low for Intel ($INTC). But the most recent under-performance, and the choppiness of the overall market, might warrant current longs to manage that downside risk over the next 30 days.

Look to short-term bears for a high probability trade in a low implied volatility market (i.e. an in the money bear put spread). Remember to tread lightly on the side of size.

Have a great trading day!