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PreMarket Prep Recap: Intel's Big Beat And Simple Technical Analysis At Work In Boeing

Joel Elconin

Issues affected by the coronavirus outbreak, a big earnings beat and technical look were a few of the issues covered on Friday's PreMarket Prep Show.

Despite there being no end in sight to the coronavirus epidemic, the major indexes were firmly in the green during the show. That all changed off the opening bell and many of the major indexes were red as of 1 p.m. EST. The declines can be attributed to more reported cases of the virus in the U.S.

Follow Up On Lakeland Industries

There are many issues that are positively and negatively being affected by the coronavirus outbreak. Airlines, cruise and gaming stocks are suffering most of the damage on the downside, while others like hazmat suit maker Lakeland Industries (NASDAQ: LAKE) have benefited.

On Thursday's show, the pair of lows at the $12 area were identified as a must-hold support level. The issue did dip into the $12 handle, but found buyers ahead of that level as $12.63 was the low for the session.

During Friday's show, resistance was discussed to determine if there was further upside in the issue. The author of this article identified the pair of highs just under $14 from Wednesday ($13.97) and Thursday ($13.79) as a level if breached may instigate another leg higher.

With the report of a few outbreaks of the virus this morning in the U.S., the issue cleared that hurdle and as of 1:00 p.m. EST $14.85 stands as the current high.

Intel Delivers Huge Q4 Beat

After the close on Thursday, Intel (NASDAQ: INTC) announced an EPS beat of 27 cents along with a revenue beat of $1 billion.

The issue, which is already having a good week, ending last Friday's session at $59.60, closed Thursday at $63.32, is extending those gains in a big way. After a $3 higher open, it retreated only 12 cents before embarking another leg higher moving towards $70 as of 12:30 p.m. EST.

Co-host Dennis Dick said the issue was still some distance from its all-time high ($75.83) from September 2000. He went on to point out that when it did make that high, the issue was at a ridiculous valuation based on earnings per share. Thus, emphasizing the importance of valuations when putting issues in your long-term portfolio. Even with its major rally since the financial crisis, it has still been an underperformer from a longer-term perspective.

Boeing: Will Former Support Act As Resistance?

One of the simple technical analysis techniques often discussed on the show is how old support in an issue can provide for resistance on a rebound. Also, the opposite where old resistance can act as new support. The reason being, price/investors have memory at those levels and may look or initiate a position at those areas when revisited.

For example, Boeing (NYSE: BA) had made several lows in the $320-$325 area during the 737 MAX crisis, meaning buyers were attempting a long position in the issue. With the issue severely breaching that level on Tuesday and falling further on Wednesday to $302.75, it staged a rebound to end Thursday's session at $317.79.

On Friday morning, the issue returned to the former support area ($320-$325), but found sellers in the session as the rally stalled at the upper part of that range ($323.80) and reversed course.

The ensuing decline has taken the issue to $314.51 as of 1:00 p.m. EST and is attempting to rebound.

Evan Schnidman Joins The Show

Midway through the broadcast, Evan Schnidman, founder and CEO of Prattle was our guest. He discussed how his text analytics company interprets central bank and individual company communications.

At 8:35 a.m. EST on Monday's show, our guest will be Michael Sonneshein, Director of Business Development at Grayscale Investments (GBTC) to discuss the recent price in Bitcoin and his firms correlated Grayscale Bitcoin Trust (OTC: GBTC).


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