Watch these Intel stock levels as CEO prepares plans to sell assets and cut costs

Key recommendations

• Intel stock remains in focus this week after Reuters reported Sunday that CEO Pat Gelsinger and other senior executives are expected to unveil plans later this month that involve shedding assets and cutting capital spending as part of an effort to turn the company’s fortunes around.

• Since plunging more than 26% in early August following the company’s quarterly results, Intel shares have made two new lows, raising the possibility of a double bottom, a chart pattern that usually marks a reversal back to the upside.

• Investors should watch Intel stock’s key broad chart levels at $25, $30, $32.25 and $37.

Intel (INTC) stocks remain in focus this week after Reuters reported Sunday that CEO Pat Gelsinger and other senior executives are expected to unveil plans later this month that involve shedding assets and cutting capital spending in an effort to turn the company’s fortunes around.

On Friday, the stock rose more than 9% after Bloomberg reported that the chip maker is considering spinning off or selling its foundry business, a loss-making division that makes chips for third-party customers. However, sources said Reuters that the company had no plans yet to sell its contract manufacturing operation, but was considering divesting its Altera programmable chip unit.

Even after Friday’s jump, Intel shares are down more than 56% since the start of the year, declines that accelerated last month after the chipmaker’s disappointing second-quarter earnings report. The company also announced a dividend freeze and a 15% workforce reduction aimed at saving $10 billion.

Below, we’ll take a closer look at Intel’s chart and use technical analysis to point out important price levels to watch.

Double bottom pattern in play

Since falling more than 26% in early August following the company’s quarterly results, Intel shares have made two new lows, raising the possibility of a double bottom, a chart formation that usually marks a reversal back to the upside.

Although the chipmaker’s stock closed above the pattern’s neckline on Friday on above-average trading volume, investors should watch for a more decisive breakout this week for further confirmation of a valid signal.

Watch these key levels of the Intel charts

Amid continued bullish equity price action, market participants should monitor four specific broad chart levels that could attract interest.

The first is around $25, a region where investors who bought near recent lows could look to take profits near two prominent lows that formed in October 2022 and February 2023.

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Next, it could see a move up to $30, a location that may encounter resistance from a horizontal line connecting multiple highs and lows of the stock between November 2022 and July this year.

A successful close above this level could see the stock climb to the $32.25 area, where it could face selling pressure near a trendline that joins the swing lows of August and October 2023, with levels trading most recent from May to July this year.

Ongoing purchases may push the stock to $37. This area currently finds a confluence of resistance from the downsloping 200-day moving average (MA) and multiple price tops that formed on the chart between June 2023 and July 2024.

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