Watch These Intel Stock Price Levels After Chipmaker Agrees to Give Government 10% Stake

Intel (INTC) shares wavered to start the week after surging Friday following news that the U.S. government had reached a deal to take a 10% stake in the embattled chipmaker.

President Donald Trump said Friday on Truth Social that he negotiated the investment with CEO Lip-Bu Tan, and that it was a “great Deal for America, and, also, a great Deal for INTEL.” Commerce Secretary Howard Lutnick said the deal “strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.”

The U.S. will acquire 433.3 million primary shares of Intel common stock at for $20.47 each, the company said. The money, Intel added, would come from “the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program.”

Intel shares have rebounded since sliding below $20 earlier this month when Trump called on Tan to step down over is ties to Chinese firms. Tan, who took over the top position at Intel in March, and Trump met a few days later, paving the way for the negotiations that resulted in the deal unveiled Friday.

Intel shares rose more than 4% in early trading Monday, after surging 5.5% on Friday, but finished the session down 1% at $24.55. Intel shares have gained 23% since the start of the year, significantly outpacing the S&P 500 over the same period as investors place bets that Tan can turn around the once-storied chipmaker’s fortunes.

Below, we take a closer look at the technicals on Intel’s chart and point out key price levels worth watching out for.

Established Trading Range in Focus

After attracting buying interest near a multi-month floor earlier this month, Intel shares have continued to climb higher on above-average volume, potentially setting the stage for a breakout from an established trading range.

In a win for the bulls, the 50-day moving average (MA) recently crossed above the 200-day MA to generate a golden cross, a bullish chart signal that indicates the start of a new uptrend. Moreover, the relative strength index sits above its neutral threshold to confirm positive price momentum in the stock.

Let’s identify key overhead areas to watch on Intel’s chart and also point out important support levels worth monitoring during possible pullbacks.

Key Overhead Areas to Watch

Investors should initially keep their eyes peeled on the $26 area. This location could provide overhead resistance near last week’s high and three prominent peaks that formed on the chart between November and May.

A decisive breakout above this key area could see the price rapidly climb to around $30. Tactical traders who have accumulated the shares during the stock’s long-term trading range may decide to lock in profits near a period of sideways drift that developed on the chart prior to last August’s significant drop. 

This area also sits just below a bars pattern target that takes the stock’s rally earlier this month and repositions it from last week’s low, providing clues as to how a continuation move higher may play out.

Important Support Levels Worth Monitoring

During pullbacks in the stock, it’s worth monitoring the $22 level. The shares could attract buying interest in this location near the key moving averages and a trendline that connects a range of corresponding price action on the chart stretching back to last year’s stock gap.

Selling below this level opens the door for a possible retest of the important $19 level. Investors may look for buy-and-hold opportunities in this region near a horizontal line that marks Intel’s multi-month trading floor.

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As of the date this article was written, the author does not own any of the above securities.