Key takeout
Intel (INTC) Intel shares will be in the spotlight this week as they plan to publish their second quarter results on Thursday.
Investors are looking for updates to the company’s casting business after reports surfaced earlier this month that recently installed Lip-Bu Tan is considering changes in the company’s contract chip making business. Reports suggest that possible changes could lead Intel to amortize chipmaking technology worth hundreds of millions or billions of dollars as a loss.
Intel shares have risen 15%, up 20% from last month’s decline since the end of the year, up 20% from last month’s decline since the end of Friday, boosting in the hopes that chipmakers will be able to navigate successful turnarounds under Tan’s leadership after months of trading speculation and strategic restructuring.
Below we take a closer look at Intel’s charts and use technical analysis to identify price levels that are worth paying attention to prioritizing quarterly reports.
Focus on the ascending channel
After attracting interest buying around the floors of a few months’ trading range, Intel’s stock has been higher within the rising channel. Recently, stocks have been backing back towards a low trend line of patterns regarding declines in trading volumes, showing uncertainty ahead of the highly anticipated revenue report.
However, in the Bulls’ victory, the relative strength index remains above the neutral territory, showing positive price momentum.
Identify the key support and resistance levels that investors are likely to be seeing on Intel charts.
Important support levels to monitor
A breakdown below the low trendline of the upward channel allows the stock to test support at around $22 first. The area, which now closely monitors its 200-day moving average, could attract buyers near the horizon last August, returning to the prominent gap in stocks.
Sold below this level will open the door for a low support retest at $19. Investors can view the area as a highly probable purchase area near the trendline that connects multiple troughs on the chart between August and June and marks the floor of the stock’s multi-month trading range.
Resistance level to monitor
Breakouts above the top trendlines of the ascending channel can cause prices to rise and appear to be around $26 for overhead resistance. The stock could encounter sales pressure at this location near three notable peaks that occurred on the chart between November and March.
Finally, a more bullish move in Intel stocks could drive the rally towards $30. Investors who buy at low prices may decide to lock in profits at this level near the period of psychological rounds and sideway drift that preceded the stock gap decline in August last year.
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