Watch These Intel Stock Price Levels After Recent Rally Stalls

Intel (INTC) shares fell slightly Thursday after a steep downturn the previous session that snapped a five-day winning streak for the embattled chipmaker.

The stock surged about 30% during the week-long run, which came as Intel named Lip-Bu Tan as its new CEO and amid fresh reports that the company could sell parts of its business. The stock fell 7% on Wednesday as reports emerged that threw cold water on some of the latest deal speculation.

Despite the recent rally, Intel shares are down 43% over the past 12 months amid the company’s inability to make inroads into the booming AI chip market and months of restructuring and deal rumors. The stock fell 0.7% to around $24 on Thursday.

Below, we take a closer look at Intel’s weekly chart and use technical analysis to identify key price levels worth watching.

Potential Rectangle Bottom

Since Intel’s steep drop in early August last year, the price has oscillated within an orderly trading range, potentially carving out a rectangle bottom similar to a rangebound period that preceded a trending move in the stock between February and December 2023.

More recently, the shares have tested the respected 50-week moving average over the past five weeks but have met selling pressure on each occasion.

In a win for the bulls, the relative strength index (RSI) has reclaimed the 50 threshold, indicating improving price momentum. Trading volume has also increased in recent weeks, suggesting growing investor interest in the stock.

Let’s identify three key overhead areas on Intel’s chart that investors may be watching and also point out an important support level that would likely attract interest during potential retracements.

Key Overhead Areas to Watch

The first overhead area to watch sits around $26. This level finds a confluence of resistance from the 50-week moving average and a horizontal line that connects the lower and upper ranges of the two rectangle patterns on Intel’s chart.

A decisive breakout above this level could trigger a move to the key $30 area. Investors may look to lock in profits in this region near the psychological round number and a series of peaks and troughs that formed on the chart between November 2022 and June last year.

Follow-through buying may see the shares climb to around $36, a location where they could run into selling pressure near the downward sloping 200-week moving average, which closely aligns with a range of price action on the chart stretching back to June 2022.

This area also roughly corresponds with a projected bars pattern price target that extracts the stock’s trending move from February to December 2023 and repositions it from last month’s low, predicting what a move higher might look like if price history rhymes.

Important Support Level to Monitor

Finally, during retracements in Intel shares, investors should keep a close eye on the $19 level. Investors may view this area as a trading floor near the low of the rectangle pattern.

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As of the date this article was written, the author does not own any of the above securities.