Key Takeaways
- Intel shares will be in focus this week as investors await the beleaguered chipmaker’s third quarter results after Thursday’s closing bell.
- Investors will look for further updates from executives about the company’s turnaround plans, which have helped underpin a 23% recovery in the chipmaker’s stock since its early-September low.
- The stock has continued to trade sideways since breaking out above the neckline of a double bottom pattern last month.
- Investors should watch key support levels on Intel’s chart around $22 and $19, while also monitoring important resistance areas near $25, $30 and $36.
Intel (INTC) shares will be in focus this week as investors await the beleaguered chipmaker’s third quarter results after Thursday’s closing bell.
Analysts expect the company to report a decline in revenue for the period owing to softening demand for both its PC and server chips as it faces intensifying competition from rivals, such as Advanced Micro Devices (AMD) and artificial intelligence (AI) darling Nvidia (NVDA).
Investors will look for further updates from executives about the company’s turnaround plans, which has helped underpin a 23% recovery in the chipmaker’s stock from its early-September low. However, the shares still remain more than 50% lower since the start of the year through Friday’s close, as the company’s dominance in the chip market continues to shrink.
Below, we take a closer look at the technicals on Intel’s weekly chart and point out important price levels to watch out for as the chipmaker prepares to report its quarterly results.
Rangebound Trading Persists
Since breaking above the neckline of a double bottom on above-average volume last month, Intel shares have remained stuck in a sideways drift, with a doji forming last week—a candlestick pattern that indicates indecision.
Moreover, the relative strength index (RSI) has flattened out in recent weeks, confirming rangebound conditions in the stock.
Amid the potential for earnings-driven volatility, let’s outline several important levels on Intel’s chart that investors will likely be watching.
Key Support Levels to Monitor
Firstly, it’s worth keep an eye on the $22 level. This area on the chart sits just 3% below Friday’s close and has provided support over the past month near the double bottom pattern’s neckline.
A decisive breakdown below this region could see the chipmaker’s stock revisit the $19 level, an area where bargain hunters may look for buying opportunities near the August and September double bottom troughs.
Important Resistance Areas to Watch
A breakout above the recent sideways drift may drive a move up to around $25. Investors who have purchased the stock at lower levels in recent months could seek exit points near three prominent swing lows that formed on the chart between October 2022 and February last year.
A rally through this level could see the shares climb to $30, a location where the price may run into overhead selling pressure near major peaks and troughs on the chart from November 2022 through to June this year.
Finally, a more bullish move may lead to a retest of the $36 level, an area just above the 50-week moving average where investors could decide to lock in profits near a trendline connecting a range of comparable trading levels on the chart between June 2022 and July this year.
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As of the date this article was written, the author does not own any of the above securities.