INTC, AMD and AVGO Forecast – Chip Stocks Falling with Everything Else

INTC Technical Analysis

Intel had a pretty wild swing during the trading session on Thursday, but on Friday it looks like it’s going to give back all of those gains. After the rally due to the announcement with a preliminary agreement in Taiwan Semiconductor building their products in the United States, quite frankly, I think the fear in the market has just overcome everything. And really, it just might make Intel fall a little less than some of the other stocks in this analysis, but right now it does look like Intel is ready to test that $20 region again, as we are going to open the market down unless something changes quite drastically.

AMD Technical Analysis

AMD looks like it’s going to continue its freefall. Again, I don’t think it has a lot to do with these particular companies. I just think that there’s that much fear out there that people are just simply dumping anything and everything they can. With that being the case, I do think AMD continues to fall from here and when you look at the technical analysis, you can see that since the month of November, we had a death cross, and we’ve just followed right along with the 50 day EMA. This is a market that could find itself testing $85 pretty quickly.

AVGO Technical Analysis

And then finally Broadcom looks like it’s going to gap down pretty significantly as well. I do think that Broadcom will probably test the $130 level. This thing is just falling off of a cliff right now, and as a result, I think the real trade in all of these companies, honestly, is going to let all of the bleeding stop by them and then sit on them for two or three years. This is one of those major corrections that happen every few years that the wealthy take advantage of. They buy these stocks and then walk away.

They check on them in a few years and sell them for big gains. For traders, they’re probably going to go short of these stocks and that’s fine. Just understand that typically shorting is a lot more dangerous when it comes to stocks than other assets because of the natural proclivity of stocks that go higher over the longer term. That being said, it comes down to your time frame with these markets. You’re either trying to short it now or you’re waiting for it to stabilize for a week or two and buy it for a longer term investment.