It's tempting to sell Intel (INTC) shares at current levels.
The stock, which now trades at six-month highs, has seesawed between $30 and $35 for the past 12 months. The historic trend has been that the stock will move back lower, but it would be mistake to take profits now. This is despite the 9% gains it has delivered since my buy recommendation on April 18.
Even at its six-month high, Intel stock trades on the assumption of little to no growth. The stock is priced at just 14 times earnings estimates of $2.42 per share, compared to a forward price-to-earnings ratio of 16.5 for the average stock in the S&P 500 (SPX) index.
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At current levels, the stock is just $1 below analysts' consensus price target of $35.
Intel will report second-quarter earnings on July 20. If it beats and raises guidance, analysts will be forced to raise their price targets.
From a technical perspective, the chart below has no bearish trends.
Intel shares closed Friday at $34.00, up 2.41%. But even with its recent gains, including a 6% rise over the past month, the stock is still down 1.31% year to date, compared to the 4.21% rise in the S&P 500 index. The stock was making up for lost ground.
The shares, which have bounced 15% from their support level of $29.50, have now risen well above their critical 20-day ($32.24 -- blue line), 50-day ($31.33 -- pink line) and 100-day ($31.29 -- yellow line) moving averages.