The bulls and bears continue to pull the market in varying directions as we head into year-end trading. While the bears appear to have a grip on the technology sector, the bulls continue to push industrial stocks higher.
Today’s three big stock charts look at the numbers and indicators for Alibaba Group Holding Ltd (NYSE:BABA), Intel Corporation (NASDAQ:INTC) and Boeing Co (NYSE:BA) as three stocks that represent this bull/bear tug-of-war.
Alibaba Group Holding Ltd (BABA)
INTC) /p pimg loading="lazy" class="alignnone wp-image-1086465 size-full" src="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily.png" alt="Intel Corporation (INTC)" width="700" height="530" srcset="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily.png 700w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-300x227.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-300×227.png/a 300w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-40x30.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-40×30.png/a 40w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-200x151.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-200×151.png/a 200w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-396x300.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-396×300.png/a 396w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-116x88.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-116×88.png/a 116w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-100x76.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-100×76.png/a 100w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-165x125.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-165×125.png/a 165w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-66x50.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-66×50.png/a 66w,https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-78×59.png 78w, a href="https://investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-158x120.png"investorplace.com/wp-content/uploads/2017/12/171214-INTC-Daily-158×120.png/a 158w” sizes=”(max-width: 700px) 100vw, 700px” />
Intel, along with many of the semiconductor stocks, has been exposed to selling pressure as technical traders have been migrating to the industrial stocks from high-flying tech issues in the fourth quarter. As we’ve mentioned, this follows a seasonal trend so its not unexpected to see INTC slumping.
That said, the chip giant is sitting at a critical technical test that will likely set the course for January’s trading.
For the first time since August, shares of Intel are testing their 50-day moving average as the stock has endured seasonal selling. A break below $43 will trigger a technical selling signal as INTC stock breaks below its 50-day. Momentum has turned negative on Intel shares, resulting in the Chande Trend Meter to slip into neutral territory. This indicates that INTC stock is likely to trade sideways with a negative bias through the end of the year. As we’ve pointed out, the tech sector tends to see strong seasonality in January. In Intel’s case, the stock posts positive returns in January 55% of the time over the last 20 years. A break below the 50-day will reduce the probability that INTC will rally in January along with the rest of the tech sector. Boeing Co (BA)