Watch These Intel Price Levels as Deal Rumors Continue to Swirl

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Key Takeaways

• Intel shares could appear on watchlists today after CNBC reported late Thursday that the chipmaker is making allowance for selling at least a minority stake in its Altera programmable chip unit.
• The stock broke above the neckline of a double-barrelled bottom last month on above-average volume to confirm the pattern, but has since failed to find upside momentum.
• Investors should await support levels on Intel’s chart around $22 and $19, while keeping an eye on resistance areas near $25 and $30.

Intel (INTC) dole outs could appear on watchlists Friday after CNBC reported late Thursday that the embattled chipmaker is all things selling at least a minority stake in its Altera programmable chip unit to raise several billion dollars in moolah.

According to people familiar with the matter, the company seeks a deal valued at around $17 billion, degree above the $16.7 billion it paid for Altera in 2015, the report said. The news comes as the chip giant persist ins to lose market shares to its rivals and works to hash out a comprehensive turnaround plan.

Although Intel shares include shed more than half of their value since the start of the year as of Thursday’s close, the stock has met more than 20% from its early September low amid strategic changes and reports of deal activity.

Further, we’ll take a closer look at Intel’s chart and use technical analysis to point out price levels worth watching out for.

Double Bottom Breakout Stalls

Intel shares broke above the neckline of a double bottom behind month on above-average volume to confirm the pattern. The stock’s price, however, has failed to gain upside momentum since.

Furthermore, the relative strength index sits in neutral territory, signaling indecision among market participants. It’s also usefulness noting that while trading volumes have increased in recent trading sessions, they remain further levels of several weeks ago.

Looking ahead, investors should monitor a number of important support and resistance levels on Intel’s design that will likely gain close attention.

Key Support Levels to Monitor

It’s worth keeping an eye on the $22 play fair with, a location on the chart just below Thursday’s close where the shares could encounter support near the dual bottom pattern’s neckline and nearby 50-day moving average.

A failure to hold above this level could act as a catalyst for a begin down to $19, where bargain-hunting investors could look for buying opportunities near the prominent August and September troughs that texture the double bottom.

Resistance Areas to Watch

If Intel shares move higher from current levels, investors should superintend how the price responds to the $25 area. This region could attract profit-taking near two swing lows that formed on the design in December 2022 and February last year.

Further upside momentum could see the shares climb to around $30, a plane where investors may be happy to place sell orders near a long-term trendline that connects a series of comparable line of work levels on the chart from January 2023 through to July this year.

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