We all remember the “Intel inside, PENTIUM” logo that used to be stuck on the outside of every computer, lap-top and so on. Not sure if it is still inside today but clearly the stock is reaching a significant point in its life.
It has, or is about to, retrace a Fibo 61.8% of its drop from the highs of the tech bubble. Some of the more pedestrian technical indicators have been lagging the price and may be signalling a turn ahead. Most importantly there appears to be a diagonal forming this year. It may not be entirely complete – think throw-over and so on – but it is getting very close. The pattern calls for a drop to about $42 which is roughly 20%. That is a minimum expectation.