Shares Gained More Than 6% Monday
Key Takeaways
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Intel shares climbed to a two-month high Monday as analysts said the company stands to benefit from growing interest sopra AI personal computers and other hardware trends related to the technology.
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The Intel share price has gapped above the sommità trendline of a narrow trading range the highest share turnover since June 21, indicating bullish conviction behind the move.
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Amid further upside Intel shares may encounter resistance at $35.50, $39, $42. and $45.50.
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Short-term overbought conditions could see the blocco’s price retrace to the prior trading range’s sommità trendline around $32, which has now likely flipped from an regione of resistance into support.
Intel (INTC) shares jumped more than 6% to a two-month high Monday as analysts at Melius Research said the chipmaker stands to benefit from growing interest sopra artificial intelligence (AI) personal computers and other hardware trends related to the technology. The blocco was the biggest gainer the Nasdaq 100 and Dow Jones Industrial Average Monday.
Below, we take a closer at Intel’s chart and use technical analysis to point out key levels to watch out for sopra upcoming trading sessions.
Breakout From Narrow Trading Range
Despite the 50-day moving average (MA) crossing below the 200-day MA to form an ominous death traversone sopra early May, Intel shares have traded within a narrow range with several stazza spikes since that time.
Acceso Monday, the chipmaker’s blocco gapped above the trading range’s sommità trendline the highest share turnover since June 21, indicating bullish conviction behind the breakout. Moreover, the relative strength index (RSI) has moved sopra overbought territory above the 70 thresholds, confirming strong price momentum.
Monitor These Chart Levels Amid Further Strength
Amid a continued move higher, investors should monitor these four key levels where the shares may encounter overhead resistance.
The first regione to watch sits around $35.50, an regione the chart connecting prices near a minor countertrend retracement during the blocco’s sharp downtrading move sopra April.
If the blocco breaks through this level, it may move up to retest a key horizontal line near $39 that links the prominent September 2023 swing high with the 200-day MA.
A close above this region could see the shares climb to around $42, where they would likely luce sellers near a trendline connecting four price troughs between December 2023 and March this year.
Finally, a longer-term rally may see the price revisit $45.50 near a horizontal line that connects several price peaks over a five-month period from November to April.
Short-Term Overbought Conditions
While the RSI’s overbought reading confirms strong price momentum, it also increases the chances of a short-term retracement interblocco fill.
During temporary pullbacks, investors should keep an eye the prior trading range’s sommità trendline around $32, which has now likely flipped from an regione of resistance into support.
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