Key Points
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Intel shares remain in the spotlight this week after Reuters reported Sunday that CEO Pat Gelsinger and other top executives are expected to unveil plans later this month involving asset divestments and reductions in capital spending as part of an effort to turn the company’s fortunes around.
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Since dropping more than 26% in early August following the company’s quarterly earnings release, Intel’s stock has hit two lows, raising the possibility of a double bottom, a chart pattern that typically signals a trend reversal to the upside.
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Investors should keep an eye on the key price levels for Intel stock: $25, $30, $32.25, and $37.
Intel (INTC) stocks continue to be in the spotlight this week after Reuters reported Sunday that CEO Pat Gelsinger and other top executives are expected to unveil plans later this month that involve divesting assets and cutting capital spending in an effort to turn the company’s fortunes around.
On Friday, the stock rose more than 9% after Bloomberg reported that the chipmaker is considering spinning off or selling its foundry business, a money-losing division that makes chips for outside customers. However, sources said Reuters that the company has no plans to sell its contract manufacturing operations, but is considering spinning off its Altera programmable chip unit.
Even after Friday’s jump, Intel’s shares have fallen more than 56% since the beginning of the year, with the declines accelerating last month after the chipmaker’s disappointing second-quarter report. The company also announced a pause on dividend payments and a 15% workforce reduction aimed at saving $10 billion.
Below, we take a closer look at Intel’s chart and use technical analysis to highlight key price levels to watch.
Double bottom pattern in play
Since the 26%+ drop in early August following the company’s quarterly earnings announcement, Intel has hit two lows, raising the possibility of a double bottom. This is a chart pattern that typically signals a trend reversal to the upside.
While the chipmaker’s shares closed above the pattern’s neckline on Friday on above-average trading volume, investors should watch for a decisive breakout this week to confirm a valid signal.
Check out these key overhead Intel graphics levels
As stock prices continue to rise, market participants should keep an eye on four specific chart levels that are likely to attract attention.
The initial price is around $25, a level where investors who bought near the recent lows can lock in their profits around two key lows that formed in October 2022 and February 2023.
Further gains could see a rally to $30, a level that could face resistance from a horizontal line connecting multiple peaks and troughs in the stock between November 2022 and July this year.
A successful close above this level could see shares rise towards the $32.25 area, where they could face selling pressure near a trendline that aligns with the August and October 2023 swing lows, with more recent trading levels from May to July this year.
Continuous buying can push the stock price up to $37. This area currently finds a confluence of resistance from a downward sloping 200-day moving average (MA) and multiple price spikes that formed on the chart between June 2023 and July 2024.
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