Watch These Intel Price Levels After Stock Surged 20% Last Week

Intel (INTC) shares remain in the spotlight after soaring last week amid investor optimism that the embattled chipmaker could secure additional investments.

The stock gained 20% last week and has risen more than 40% since the start of the month, boosted recently by reports that the chipmaker is soliciting investments from Apple (AAPL) and Taiwan Semiconductor Manufacturing Co. (TSM). Intel earlier this month receiving a $5 billion pledge from AI Favorite Nvidia (NVDA), which came not long after the U.S. government announced it had taken a 10% stake in the company.

Analysts say they anticipate new developments on the investment front spurring more gains for the stock in the near term, though cautioned they still have concerns about the company’s fundamentals. Intel shares were down 4% at around $34 in the opening minutes of Monday’s session.

Below, we take a closer look at the technicals on Intel’s weekly chart and identify critical price levels worth monitoring.

Multi-Month Trading Range Breakout

Since breaking out above a multi-month trading range earlier this month, Intel shares have continued to trend sharply higher and closed above the closely watched 200-week moving average last week. 

Importantly, the stock’s recent advance has occurred on above-average trading volume, raising the prospect of follow-through buying.

Meanwhile, the relative strength index confirms bullish price momentum, though the indicator sits in overbought territory near a reading that marked local tops in the stock in January 2020 and December 2023.

Let’s identify major overhead areas on Intel’s chart to watch if the shares keep climbing and also point out support levels worth monitoring during potential retracements.

 Critical Overhead Areas to Watch

The first overhead area to watch sits around $45. This location may provide resistance near a trendline that connects a range of peaks and troughs on the chart stretching all the way back to May 2019. This level also roughly coincides with the 78.6% Fibonacci retracement level when applying a grid from the December 2023 high to the lower trendline of the stock’s multi-month trading range.

A successful close above this critical level could trigger a rally toward $56. Investors who have accumulated shares at lower prices may decide to lock in profits in this region near a horizontal line that links a series of comparable trading activity on the chart between October 2019 and January 2022.

Major Support Levels to Monitor

During retracements in the stock, investors should initially monitor the $30 level. The shares could attract buying interest in this location near several countertrend highs in late 2022 and early 2023, which also closely align with a sideways trend on the chart from May to July last year.

Finally, a deeper pullback in Intel shares may see a retest of major support around $26. This area on the chart marks the top of the stock’s multi-month trading range and could flip from prior resistance into future support.

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