:max_bytes(150000):strip_icc()/INTCChart-8da1a7aedcb74df795dffdae5c8a388c.gif "Watch these Intel stock prices as the CEO reportedly prepares plans to sell assets and cut costs")
Key findings
- Intel shares remain in focus this week after Reuters reported Sunday that CEO Pat Gelsinger and other senior executives are expected to unveil plans later this month that include selling assets and reducing capital spending in an effort to turn the company’s fortunes around.
- Since falling more than 26 percent in early August following the release of the company’s quarterly results, Intel shares have made two lows, raising the possibility of a “double bottom,” a chart pattern that typically marks an uptrend reversal.
- Investors should keep an eye on key chart levels for Intel shares at $25, $30, $32.25 and $37.
Intel (INTC) shares remain in focus this week after Reuters reported Sunday that CEO Pat Gelsinger and other senior executives are expected to unveil plans later this month that include selling assets and reducing capital spending to help the company turn around.
On Friday, the stock rose more than 9% after Bloomberg reported that the chipmaker is considering spinning off or selling its foundry business, a loss-making division that makes chips for third-party customers. However, sources said Reuters that the company has no plans to sell its contract manufacturing business yet, but is considering the divestment of its programmable chip division, Altera.
Even after Friday’s jump, Intel shares have fallen more than 56 percent since the beginning of the year. The decline accelerated last month after the chipmaker’s disappointing second-quarter earnings report. The company also announced a suspension of its dividend payments and a 15 percent workforce cut to save $10 billion.
Below, we will take a closer look at the Intel chart and use technical analysis to highlight key price levels to keep an eye on.
Double-bottom pattern in play
Since falling more than 26 percent in early August following the release of the company’s quarterly results, Intel shares have made two lows, raising the possibility of a “double bottom,” a chart formation that typically marks an uptrend reversal.
Although the chipmaker’s stock closed above the pattern’s neckline on above-average trading volume on Friday, investors should look for a more significant breakout this week for additional confirmation of a valid signal.
Watch for these important overhead Intel chart levels
As the stock price continues to move higher, market participants should keep an eye on four specific chart levels that are likely to be of interest.
The first is around $25, a region where investors who bought near recent lows could look to lock in profits near two notable lows formed in October 2022 and February 2023.
A further rise to $30 would be possible, a level that could face resistance from a horizontal line connecting several highs and lows for the stock between November 2022 and July of this year.
A successful close above this level could take shares to the $32.25 area, where they could face selling pressure near a trendline connecting the August and October 2023 swing lows to the more recent trading levels from May to July of this year.
Sustained buying could push the stock to $37. In this area, resistance currently faces the downtrending 200-day moving average (MA) and several price peaks that formed on the chart between June 2023 and July 2024.
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At the time of writing, the author does not own any of the securities mentioned above.
