Stock Price of Intel Remains the Same After the Chipmaker Climbs

As a result of analysts at Melius Research stating that the chipmaker stands to profit from rising interest in artificial intelligence (AI) personal computers and other hardware trends connected to the technology, shares of Intel (INTC) increased by more than 6% to reach a two-month high on Monday. Monday was the day when the stock had the most increase on both the Nasdaq 100 and the Dow Jones Industrial Average.

In this section, we take a more in-depth look at the chart of Intel and make use of technical analysis to highlight important levels that traders should keep an eye out for in the future trading sessions.

Key Things To Gain

• The stock of Intel reached a new high for the first time in two months on Monday, as experts predicted that the business would reap benefits from the rising interest in artificial intelligence personal computers and other hardware developments connected to the technology.

• There is a positive confidence behind the move, as evidenced by the fact that the price of Intel shares has gapped over the top trendline of a narrow trading range on the largest share turnover since June 21.

• It is possible that Intel shares may face resistance at $35.50, $39, $42, and $45.50 throughout the course of future upward movement.

• Overbought circumstances in the short term might cause the price of the stock to retrace to the top trendline of the last trading range, which is located around $32. This trendline has most likely shifted from being an area of resistance to an area of support.

Breakout from a Trading Range That Is Very Narrow

Despite the 50-day moving average (MA) falling below the 200-day MA to produce a foreboding death cross in early May, Intel shares have moved inside a limited range with many volume surges since that time.

On Monday, the chipmaker’s stock gapped over the trading range’s top trendline on the largest share turnover since June 21, signaling positive conviction behind the breakthrough. Moreover, the relative strength indicator (RSI) has risen in overbought zone over the 70 thresholds, showing strong price momentum.

Monitor These Chart Levels Amid Further Strength

• Amid a sustained run up, investors should observe these four important levels where the shares may find overhead resistance.

• The first place to watch is around $35.50, an area on the chart linking prices around a modest countertrend retracement during the stock’s steep downtrading move in April.

• If the stock breaks through this level, it may continue up to retest a major horizontal line at $39 that ties the notable September 2023 swing high with the 200-day MA.

• A closing above this level may see the shares move to roughly $42, where they would likely encounter sellers around a trendline linking four price troughs between December 2023 and March this year.

• Finally, a longer-term rebound may see the price revisit $45.50 around a horizontal line that connects many price peaks over a five-month period from November to April.

Short-Term Overbought Conditions

• While the RSI’s overbought signal reflects strong price momentum, it also enhances the likelihood of a short-term correction or gap fill.

• During minor pullbacks, investors should keep a watch on the last trading range’s top trendline around $32, which has now likely switched from an area of resistance into support.

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• As of the day this post was published, the author did not hold any of the aforementioned securities.