Recent activity from three prominent tech stocks is challenging several technical trading theories, as highlighted by Jessica Inskip, the director of investor research at StockBrokers.com. During a segment titled “Three Stock Lunch” on Tuesday, Inskip discussed how Meta Platforms, Intel, and Amazon are approaching critical thresholds on their technical charts.
Starting with Meta Platforms, the company saw its stock drop about 2.8% on Tuesday, ending a 20-session winning streak. Inskip mentioned that while Meta remains in a generally “bullish trading cycle,” the recent streak has brought it close to the top of its expected range. “If you look at the Bollinger Bands, which correspond to two standard deviations, the stock hits that point, loses momentum, and then pulls back to find support around the 13-week moving average,” explained Inskip on “Power Lunch.” She predicted it might take four to six weeks for the stock to drift back to this support level.
Switching gears to Intel, the stock seems to have embraced a new trading pattern altogether. Intel’s shares surged 16% on Tuesday following a Wall Street Journal report suggesting the chipmaker might be split and sold to competitors—a welcome development for a stock that fell roughly 60% in 2024. “This stock has actually surpassed all its key milestones to enter a bullish trading cycle and establish a base,” Inskip noted. Having closed above $27 per share on Tuesday, Intel now shows support around $24 and $21, which could support this transition, as explained by Inskip. “This is a base. We need it to stay. If we drop below $21, it’s problematic,” she cautioned.
Lastly, Amazon’s shares dipped 0.9% on Tuesday, and the stock is lagging behind the S&P 500 for the year. Although the e-commerce giant’s chart still suggests positivity, it’s nearing an essential support level, according to Inskip. She pointed out, “A sell-off might be triggered if we see a weekly close below the 13-week moving average, which is around $225, so keep an eye on that.” On Tuesday, Amazon closed at $226.65 per share, teetering just above this key level.
