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Intel’s Quarterly Outlook Sparks Concern Among Investors

Overview of Recent Performance

Intel Corporation (ticker: INTC) experienced a significant decline in its stock price during after-hours trading on Thursday, dropping 5% after the company revealed a quarterly forecast that failed to meet analysts’ expectations.

The chipmaker highlighted that the uncertainty stemming from the Trump administration’s tariff policies prompted customers to engage in chip stockpiling during the first quarter. This anticipated behavior is projected to negatively impact revenue for the current quarter. Newly appointed CEO Lip-Bu Tan acknowledged the challenges ahead, emphasizing that it would take time for Intel to regain market share and establish a path toward sustainable growth.

Despite outperforming the S&P 500 index since the beginning of the year, Intel’s stock has fallen approximately 37% over the past year, largely due to concerns about the company’s strategic direction and its struggles to penetrate the rapidly growing artificial intelligence (AI) chip market.

After gaining over 4% in regular trading, Intel’s stock fell to $20.39 in after-hours transactions.

Examining Technical Analysis

This report delves into the technical aspects of Intel’s stock price to identify critical levels that investors should monitor moving forward.

Extended Trading Range Observed

Since suffering a sharp decline last August, Intel shares have traded within a relatively narrow range, helping to establish recognizable trading levels.

A recent rise in the stock, which coincided with the relative strength index (RSI) crossing above the 50 mark, is likely to be short-lived following the lackluster earnings report.

In the following sections, we will identify support levels that might stabilize the stock and key price points that could draw attention in potential upward movements.

Important Support Levels to Monitor

In light of expected post-earnings selling pressure, investors should focus on the $19 support level initially. This zone is anticipated to generate significant buying interest, aligning with the lower trendline of the extended trading range.

A drop below this critical support could push shares towards the $15 mark. This projection is based on analyzing price declines from late March to early April, which indicates the potential for three downward movements as reflected in the chart.

Key Resistance Levels to Watch

As Intel’s stock may attempt to rebound, attention should be paid to the $22 range, approximately at the midpoint of the trading range. The stock may encounter selling pressure around this level, which coincides with both the 50-day and 200-day moving averages, as well as a trendline connecting significant peaks and troughs since early August of the previous year.

Should a more substantial recovery occur, shares might approach the upper trendline of the trading range at around $26. Investors who have purchased shares at lower prices could be inclined to realize profits if the stock reaches this area, as it aligns with three notable peaks recorded between November and March.

The insights and analysis provided are for informational purposes and should not be interpreted as financial advice.

As of the date of this article, the author does not hold any positions in the mentioned securities.

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