Watch these Intel price levels as stocks rise after CEO gives business update

Shares rose nearly 8 percent in extended trading Monday

Key recommendations

• Intel shares rose nearly 8 percent in extended trading Monday, adding to big gains during regular trading, after the chipmaker’s CEO Pat Gelsinger provided an update on the company’s plans to cut costs and and change the business.

• Although the stock hit a fresh multi-year low this month, it has staged a partial recovery to currently trade near its September high, potentially forming a hammer, candlestick pattern that suggests a bullish reversal.

• Investors should monitor important support levels on Intel’s monthly chart at $20, $17 and $14, while watching for key resistance areas at $25 and $35.

Intel (INTC) shares rose in extended trading Monday after the chipmaker’s CEO Pat Gelsinger provided an update on the company’s plans to cut costs and turn around its business.

Gelsinger said in a note to employees after the closing bell that Intel had made progress cutting costs through layoffs, reducing its real estate footprint and selling part of its stake in its Altera programmable chip unit, among other steps. The company also plans to spin off its chip-making arm into a separate subsidiary and has said it will make chips for Amazon (AMZN), as well as the US military.

Intel shares rose 7.9 percent in after-hours trading to $22.56. Shares rose more than 6 percent during regular trading hours following a Bloomberg report on the contract to produce custom tokens for the military. Even with 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 historical price levels worth watching.

Potential hammer candlestick formation

After facing significant selling pressure at its closely watched 50-day moving average (MA) last December, Intel shares have been on a sharp downtrend, falling as much as 64% since then. Importantly, trading volumes rose during the sell-off in shares, indicating conviction behind the move.

Although the stock hit a fresh multi-year low this month, it has staged a partial recovery to currently trade near its September high, potentially forming a hammer-candle pattern that suggests a bullish reversal.

Looking ahead, investors should monitor several key price levels on Intel’s chart that are likely to gain close attention.

Important support levels to watch

First, it’s worth keeping a close eye on the $20 area, a price level the stock recovered to on Monday. This location on the chart finds a confluence of support from the psychological round number and a horizontal line connecting a series of historical trading levels in the chipmaker’s stock from 1997 to 2012. Confirmation of a September hammer pattern at this key level would record a significant level. victory for the bulls.

The story continues

However, a continuation of Intel’s downtrend could send the stock down to around $17, where it would likely find support from a period of equity consolidation between 1997 and 1998, an area that also closely lines up with 2006 and 2010 lows.

Longer-term weakness may bring the $14 region into play, an area of ​​the chart where buy-and-hold investors would likely look for entry points near important swing lows that formed during the 2002 dotcom bubble correction and the great recession of 2009.

Key overload levels to monitor

If a reversal occurs in Intel shares, investors should initially keep an eye on the $25 level, a key area where the stock could encounter resistance from a horizontal line connecting multiple highs and lows between 1997 and February last year.

A move above this area could see the stock climb to $35, where it could face selling pressure near a trendline that joins a series of price action from 1999 to October 2023, with the average 200-day furniture closely aligned.

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