Key takeout
Intel (INTC) shares surged in extended trading on Wednesday after appointing former board member and chip industry veteran Lip-Bu Tan as its new CEO.
Tan, former CEO of chip software company Cadence Design Systems (CDNS), will replace interim CE-CEOS David Zinsner and Michelle Johnston Holthaus, who have shared positions since Pat Gelsinger left in December. Tan will assume rolls next Tuesday.
The development follows reports that Taiwanese Semiconductor Manufacturers (TSM) approached NVIDIA (NVDA), Advanced Micro Devices (AMD) and Broadcom (AVGO) to form joint ventures to own and operate Intel’s Foundry division.
Intel’s stock has lost more than half the value in the last 12 months, overwhelmed by failing to gain more share in the lucrative AI chip market and failing to win months of restructuring and contract rumours. Following news of the CEO appointment, stocks rose 10% to $22.84 in an after-hours session on Wednesday.
Below we classify the technologies in Intel’s charts and identify key price levels that investors may be watching.
Potential range bonding base
Since the gap fell sharply in early August last year, Intel’s stocks have remained largely within range and could potentially cut the market bottom.
More recently, the stocks staged short-lived rallies, closely following the 200-day moving average (MA) before tracing towards the trading floor for the past seven months.
However, stocks will be higher in the regular trading session on Wednesday, and are set to earn more profits on Thursday.
As there is a high chance of new trends, let’s find three important overhead areas to monitor Intel’s charts and identify key support levels worth monitoring to see if inventory goes back to a few months’ lows.
Important overhead areas to watch
The initial overhead area of viewing is around $22. The stock is currently forecast to surpass this price on Thursday, but given its closest to the horizontal line in the chart range from August last year to March this year, it’s worth considering whether the Bulls can hold this level at the end of tomorrow.
Successfully above this level can lead to stocks gathering in the $26 area. Investors who have purchased recent lows may try to lock in profits near the prominent November and March peaks.
Buying on top of this area could potentially move you to around $30. This area could provide psychological circle counts and low resistance to previous trading ranges on the low gap charts in early August.
Key support levels worth monitoring
Further sales of Intel stocks can revisit the months lows at around $19. Bargain hunters may try to scoop stocks at this location near the trendline connecting multiple troughs of stock between August and February.
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