Key takeout
Intel (INTC) stock jumped on Tuesday.
Intel’s shares have been garnering 18% since the start of the year, boosted by the hope that recently appointed CEO Lip-Bu Tan could change the fate of the chipmaker that once existed and the optimism about potential deals, including the sale of its business. However, stock prices have lost less than a third of their value in the last 12 months, weighing on the company’s failure to take advantage of the booming AI chip market and the uncertainty surrounding its strategic direction.
Intel shares rose more than 7% to close Tuesday’s session at $23.59. This is the highest level since late March. The stock was the biggest winner of the Nasdaq 100 on Tuesday.
Below we take a closer look at Intel’s charts and use technical analysis to identify key pricing levels that investors may be seeing.
Flag Pattern Breakout
After recovering its 200-day moving average (MA) late last month, Intel stocks retreated towards a closely monitored indicator within the flag. This is a chart pattern showing the continuation of recent moves in stocks from the floor of trading range over several months.
Certainly, the price could stage a decisive breakout from the pattern in Tuesday’s trading session, potentially raising the stage for another leg. Furthermore, the relative strength index checks bullish price momentum, but below the indicator’s over-shop threshold, demonstrating that there is more room.
If your stock continues to gain ground, identify two key overhead areas to monitor Intel’s charts and point out the level of support that is worth tracking during future retracements of inventory.
Major overhead areas to see
First, investors need to see how the stock responds to key overhead resistances around $26. The stock could encounter considerable sales pressure in the region near a series of notable peaks formed on the charts in November, February and March. This area also roughly aligns with the predicted bar pattern target that increases the movement of the stock in front of the flag, and relocates it from Tuesday’s breakout point.
If you buy over this area, the price rise may be heading towards $30. Investors who have accumulated stocks during the extended range period of shares can place sell orders in the area near the lateral trough developed in the chart between May and June last year.
Support level worth monitoring
It’s worth monitoring the $22 level during inventory retracement. This area could attract purchase profits near 200 days of MA, and could attract trendlines linking a series of corresponding trading activities on the charts that date back to the notable low gaps of last August.
Finally, if you go below this level, it could lead to low support around $19. Investors can look for opportunities for shopping and holding at this location near the horizon that marks the floor of the stock’s multi-month trading range.
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