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Intel Shares Surge Amid Market Shifts

Key Takeaways

Intel’s stock experienced a significant rise on Wednesday, fueled by a broader resurgence in the semiconductor sector following President Trump’s announcement of a temporary 90-day cessation of several tariffs that have stirred financial markets. This rebound allowed Intel to recover from its September lows, hinting at potential sustained buying momentum. Investors are advised to keep an eye on critical resistance levels at approximately $25 and $35, while also noting a vital support zone between $18.50 and $17.

Intel (INTC) shares surged following a robust rally within the chip industry as President Trump revealed a 90-day halt on “reciprocal” tariffs.

Interest in the stock may also have been spurred by reports of a preliminary agreement for a joint venture with Taiwan Semiconductor Manufacturing Company (TSMC) aimed at managing Intel’s foundry operations.

While developments regarding tariffs are set to influence immediate market sentiment, confirmation of a deal with TSMC enhancing U.S. contract chip manufacturing may further catalyze the stock’s upward trajectory.

As of Wednesday’s close, Intel shares outperformed the S&P 500 since the year’s start, although they have experienced a 44% decline over the past year due to uncertainties surrounding the company’s restructuring and ongoing speculation about mergers. On Wednesday, the stock saw a 19% increase, finishing the day at $21.53.

The following analysis delves into Intel’s monthly chart, employing technical analysis to highlight essential levels that investors may wish to examine.

Bullish Reversal

Following a double top formation between January 2020 and April 2021, Intel shares faced a pronounced decline, with a countertrend rally toward the 50-month moving average (MA) in December 2023 facing substantial selling pressure.

Recently, bearish activity temporarily pushed the stock below last year’s September low, but bulls managed to reclaim this critical level in Wednesday’s surge, possibly opening the door to more follow-through buying. Yet, investors should prepare for continued volatility, especially with trading volumes increasing since last August.

It is essential to pinpoint vital overhead areas for monitoring, alongside a significant support zone to consider amidst the ongoing potential for tariff-induced instability.

Key Overhead Areas to Monitor

Following through on buying from present levels could lead to an ascent towards approximately $25. This chart area may encounter selling pressure near a trendline connecting various peaks and troughs dating back to mid-1997.

A breakthrough above this level might signify a longer-term bullish reversal targeting $35. Investors who purchased shares at recent lows could contemplate selling in this region which aligns with the 200-month MA and a longstanding horizontal line that corresponds with past trading patterns established between January 1999 and September 2023.

Crucial Zone of Support Worth Watching

As the stock potentially moves lower, it is critical for investors to monitor a key support zone on the Intel chart, situated between $18.50 and $17. This area is poised to attract considerable investor attention due to its status as a recent low and its proximity to a cluster of historical price points that stretch back to the late 1990s.

The information shared herein is intended for informational purposes and should not be construed as investment advice.

As of the date this article was composed, the author does not hold any of the aforementioned securities.

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