Shares gained more than 6% on Monday

Basic Takeaways

• Shares of Intel climbed to a two-month high on Monday as analysts said the company stands to benefit from growing interest in AI personal computers and other technology-related hardware trends.

• Intel’s share price has broken above the top trend line of a narrow trading range on the stock’s highest turnover since June 21, suggesting bullish conviction behind the move.

• Amid further upside, Intel shares may face resistance at $35.50, $39, $42. and $45.50.

• Short-term overbought conditions could see the share price retrace to the top trendline of the previous trading range around $32, which has now likely turned from a resistance area into support.

Intel (INTC) shares jumped more than 6% to a two-month high on Monday, analysts at Melius Research said. benefits from the growing interest in artificial intelligence (AI) personal computers and other technology-related hardware trends. The stock was the biggest gainer in the Nasdaq 100 and the Dow Jones industrial average on Monday.

Below, we take a closer look at Intel’s chart and usage technical analysis to highlight key levels to watch out for in upcoming trading sessions.

Breakout from a narrow trading range

Despite the 50 day moving average (MA) crossing below the 200-day MA to form an ominous one death cross In early May, Intel shares were trading at a marginal price range with several sound volume spikes since then.

On Monday, the chipmaker’s stock spaces above the top trendline of the trading range with the highest share turnover since June 21, indicating bullish conviction behind the breakout. In addition, the relative strength index (RSI) it has moved into overbought territory above the 70 level, confirming strong price momentum.

Watch these chart levels amid further strength

Amid a continued rally, investors should watch these four key levels where stocks may face overhead resistance.

The first area to watch is around $35.50, an area on the chart that connects prices near a minor opposite trend Set during the stock’s sharp decline in April.

If the stock breaks this level, it may rise to retest a key horizontal line close to $39 which connects the important September 2023 waved high with the 200-day MA.

A little above that area could see shares climb to around $42, where they would likely face sellers near a trend line connecting four lows between December 2023 and March of this year.

Finally, a long-term rally could see the price retrace to $45.50 near a horizontal line connecting multiple prices tops over a period of five months from November to April.

The story continues

Short-term overbought conditions

While the RSI overbought The reading confirms strong price momentum, it also increases the chances of a short-term reversal or filling the void.

During the interim withdrawalstraders should watch the top trend line of the previous trading range around $32, which has now likely turned from a resistance area to support.

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