Intel shares will remain on investors’ radar screens Tuesday after a report over the weekend said that Broadcom and Taiwan Semiconductor Manufacturing Co. are considering bids for parts of the company.
Since gapping sharply lower in early August last year, the stock has remained mostly rangebound, potentially carving out a rectangle bottoming pattern.
The relative strength index sits just below the 70 threshold, confirming bullish momentum, setting the stage for positive price action to continue this week.
Investors should watch key overhead areas on Intel's chart around $26, $32, $37, and $45, while also monitoring a major support level near $19.
Intel (INTC) shares will remain on investors’ radar screens Tuesday after The Wall Street Journal reported Saturday that Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Co. (TSM) are considering bids for parts of the embattled chipmaker.
According to the report, Broadcom has been looking into Intel’s chip-design and marketing business, while contract chipmaker TSMC has mulled taking over some or all of Intel’s chip plants as part of an investor consortium or another structure.
Intel shares surged more than 20% last week after Vice President JD Vance said at a recent AI conference in Paris that the Trump administration would take steps to ensure AI chips are designed and manufactured in the U.S, a move that could benefit Intel’s foundry business that makes chips for third parties.
Sentiment surrounding the stock received a further boost last week on speculation that the company may partner with TSMC to make chips in the U.S. Despite last week’s gains, Intel shares have lost nearly half their value over the past year amid concerns about the chipmaker’s uncertain turnaround plan and inability to capture more of the lucrative AI silicon market.
Below, we take a closer look at Intel’s chart and apply technical analysis to identify key price levels that investors may be watching out for.
Since gapping sharply lower in early August last year, Intel shares have remained mostly rangebound, potentially carving out a rectangle bottoming pattern.
This month, the stock has rallied towards the top of the rangebound period on above-average volume, though the closely watched 200-day moving average (MA) has provided resistance in recent trading sessions.
Meanwhile, the relative strength index (RSI) sits just below the 70 threshold, confirming bullish momentum, setting the stage for positive price action to continue this week.
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Let’s identify four key overhead areas on Intel’s chart where the shares could face selling pressure and also point out a major support level worth monitoring if the stock reverses course.
Firstly, it’s worth keeping track of the $26 area. This location, currenting sitting just above the 200-day MA, may provide overhead resistance near the rectangle pattern’s top trendline.
A decisive breakout above this level could see the shares climb to around $32. Investors who have bought shares at lower prices may look for exit points in this region near a trendline that connects a range of comparable trading levels on the chart between April 2023 and July last year.
Buying above this level may trigger a move up to the $37 area. The shares could encounter resistance in this location near a horizontal line the links multiple peaks on the chart from August 2023 and July last year.
A longer-term uptrend opens the door for a move up to around $45, an area where investors may look to lock in profits near a range of peaks and troughs that formed on the chart between November 2023 and March 2024.
If Intel’s share price reverses, investors should keep a close eye on the $19 level. This area on the chart would likely provide significant support where buyers may seek entry points near the rectangle pattern’s lower trendline.
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