Intel Cut in Half in a Month: Levels I'm Watching on Tesla, SpaceX, Coke and Pepsi

Intel (INTC) is down about 51% from its highs over the past month, and the next level I'm watching on a further drop is a slightly ascending trend line near $56. Monday, November 2 brought a lot of action across the stock market, so I'm covering six names here: SpaceX, Tesla, Intel, Datadog, Coca-Cola against Pepsi, and Amazon, each with my exact levels and how I drew them.

SpaceX (SPCX): a roughly $28 window between support and resistance

SpaceX (SPCX), now a publicly traded stock, felt the same selling as the rest of the board, and the one-minute candles were still falling heavily when I had the chart up. I'm framing it with two lines.

On the downside, should SpaceX keep falling and roll over on Tuesday, November 3, I'm looking at the pivot low from August, about $130. That's the area I'm watching for support.

On a sharp recovery instead, the line overhead is the descending trend line near $158. That leaves about a $28 window between the two, close to $30, and price has to pick a side before either level comes into play.

Tesla (TSLA): the descending trend line held as support

Tesla gave me the cleanest reaction of the session, and I was surprised by just how cleanly it came off the line. Draw the descending trend line from the wick, as precisely as you can to the wick itself, and extend it into Monday's daily candle. What do you know? Price came down, tagged that level and got a very good bounce.

Should the bounce continue, I have two levels to the top side:

• $453: a pivot top that rejected price three separate times. It also sits close to the $450 psychological level, and round numbers like that tend to attract extra volume.
• About $500: the December pivot high, which is Tesla's all-time high, set near $498.83 intraday.

Is Intel's sell-off over?

The U.S. government took roughly a 10% stake in Intel for $8.9 billion, and for a long stretch that looked like the smartest choice in the world. The stock rallied nearly 250% after that investment and set its 52-week high of $142.35 around June 30. On October 1, Intel closed at $120.00. Over the past month the stock has been cut in half, down about 51% from its highs, and a lot of those gains are being erased.

The pain might not be over. The RSI has been lower than this before, so there may be more room to the downside. On a continued push lower, the level I'm watching is the slightly ascending trend line at $56.

Datadog (DDOG): a two-factor zone at $212 to $214

Datadog is also feeling Monday's selling, and I like the setup underneath it. Take the June 25 pivot, where price put in a nice little bounce, and run it straight across: that horizontal sits around $212. Then draw the ascending trend line from May 7 and carry it up until it crosses that horizontal, near $214.

Those two levels sit nearly on top of each other, so I treat $212 to $214 as one zone, with $214 as my reaction level on the trend line. Keep an eye out on that zone if the selling continues.

Coca-Cola vs. Pepsi: which chart is winning?

I spent a lot of time in North Carolina, not far from New Bern, where Pepsi was founded, and my grandma always took Pepsi over Coca-Cola. Judged purely on the charts, though, Coca-Cola is winning this one.

Coca-Cola (KO): an inverse head and shoulders pointing higher

Coca-Cola held up well against Monday's red candles and kept pushing higher. Zoom out to the weekly to see how strong the run has been, then come back to the daily, where there's an inverse head and shoulders, a bullish chart pattern. Its measured target comes in around $105.

Be careful with that number: on my chart it sits in open air, and no second factor lines up with it. Along the way, I think the market wants to push Coca-Cola to the $100 level, a clean round number.

Pepsi (PEP): double-factor resistance at $141.85

Pepsi has a descending trend line that coincides with the 0.382 Fibonacci retracement. Here's how to find it yourself: pull the Fibonacci tool from the high down to the low. Always work in chronological order, left to right, and never start at the bottom and drag up. Done that way, the 0.382 lands right on the descending trend line at $141.85, call it $142. That's a nice double-factor resistance for Pepsi.

Amazon (AMZN): where a gap fill meets the trend line

Amazon's market cap sits around $2.6 trillion, and even at that size the stock is moving heavily. It's also a good chart to learn gap fills on.

A gap fill is the price level that hasn't been touched since a candle last closed there. A green candle opens low and closes high; a red candle opens high and closes low. When the next candle opens away from that close, it leaves a gap. Amazon's own chart shows what happens next more than once: price pushes up, comes back down, touches the gap fill and gets a bounce.

One gap is still open, left by a candle that started high and closed lower. Draw the descending trend line and it lines up with that unfilled gap near $262. That's the level I'm keeping an eye out on for Amazon.

Levels That Matter

Bottom Line

Coca-Cola has the strongest chart of the group and Intel the weakest, with $56 as Intel's next line on further selling and Datadog's $212 to $214 zone as the cleanest two-factor level on the board. In a market moving this fast, I'd rather take singles and doubles at these levels than swing for a home run between them.