Shares rose nearly 8% in extended trading on Monday
Important information
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Shares of Intel rose nearly 8% in extended trading on Monday, extending the biggest gain during regular trading, after the chipmaker’s CEO Pat Gelsinger gave an update on plans to the company to cut costs and transform its business.
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Although shares have fallen to multi-year lows this month, they have partially recovered to currently trade near their September highs, which may form a hammer, candlestick pattern that suggests a reversal of bullish.
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Buyers should monitor key support levels on Intel’s monthly chart at $20, $17, and $14, while looking for key resistance levels at $25 and $35.
Intel (INTC) shares rose in extended trading Monday after the embattled chipmaker’s CEO Pat Gelsinger provided details about the company’s plans to cut costs and transform its business.
Gelsinger said in a letter to employees released after the closing bell that Intel has made progress in cutting costs by cutting costs, reducing its real estate footprint and selling a portion of its stake in the company. its Altera programmable chip, among other measures. The company also plans to spin off its chipmaking arm into a separate unit and says it will produce chips for Amazon (AMZN), along with the US military.
Intel shares rose 7.9% in after-hours trading to $22.56. The stock was up more than 6% during regular trading hours after a report from Bloomberg about a contract to produce custom chips for the military. Despite Monday’s gains, the stock has lost more than half its value since the start of the year.
Below, we’ll take a closer look at Intel’s monthly chart and use technical analysis to identify key price levels to watch.
Potential Hammer Candlestick
After facing significant selling pressure at the closely watched 50-day moving average (MA) in December last year, Intel shares have fallen sharply, down nearly 64% since then. Importantly, trading prices increased during the stock market, reflecting confidence after the move.
Although shares have fallen to multi-year lows this month, they have made a partial recovery so far, trading near their September high, which may form a hammer-and-candle pattern that indicates a reversal of bullish.
Looking ahead, investors should monitor several key price levels on Intel’s chart that may receive close attention.
Key Support Levels to Watch
First, it’s important to keep an eye on the $20 area, which is the price level the stock reached on Monday. This area of the chart finds a combination of support from the psychological cycle number and a straight line connecting a range of historical trading levels in the chipmaker’s stock from 1997 to 2012. win for the bulls.
However, a continuation of Intel’s downtrend could see the shares fall to $17, where they could find support from the stock’s consolidation period between 1997 and 1998, an area that also closely coincides with 2006 and 2010 bowls.
Longer-term weakness could make the $14 area active, an area on the chart where investors may be looking for entry points near the dominant waves that emerged during the 2002 dotcom boom and bust. much in 2009.
Important Precautions
If a reversal occurs in Intel shares, investors should start monitoring the $25 level, a key area above where the stock may face resistance from the vertical line connecting the multiple peaks between 1997 and February last year.
A move above this area could see the shares rise to $35, where they may encounter selling pressure near the convergence of price trends from 1999 to October 2023 at an average of close of 200 days.
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