Watch These Intel Price Levels as Deal Rumors Continue to Swirl
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David Paul Morris / Bloomberg / Getty Images' title='Intel sign outside of the company's headquarters.'>
David Paul Morris / Bloomberg / Getty Images
Key TakeawaysIntel shares could appear on watchlists today after CNBC reported late Thursday that the chipmaker is considering selling at least a minority stake in its Altera programmable chip unit.The stock broke above the neckline of a double bottom last month on above-average volume to confirm the pattern, but has since failed to find upside momentum.Investors should watch support levels on Intel's chart around $22 and $19, while keeping an eye on resistance areas near $25 and $30.
Intel (INTC) shares could appear on watchlists Friday after CNBC reported late Thursday that the embattled chipmaker is considering selling at least a minority stake in its Altera programmable chip unit to raise several billion dollars in cash.According to people familiar with the matter, the company seeks a deal valued at around $17 billion, slightly above the $16.7 billion it paid for Altera in 2015, the report said. The news comes as the chip giant continues to lose market shares to its rivals and works to hash out a comprehensive turnaround plan.Although Intel shares have shed more than half of their value since the start of the year as of Thursday’s close, the stock has rallied more than 20% from its early September low amid strategic changes and reports of deal activity.Below, we’ll take a closer look at Intel’s chart and use technical analysis to point out price levels worth watching out for.
Source: TradingView.com
Double Bottom Breakout StallsIntel shares broke above the neckline of a double bottom last month on above-average volume to confirm the pattern. The stock's price, however, has failed to gain upside momentum since.Moreover, the relative strength index sits in neutral territory, signaling indecision among market participants. It’s also worth noting that while trading volumes have increased in recent trading sessions, they remain below levels of several weeks ago.Looking ahead, investors should monitor a number of important support and resistance levels on Intel’s chart that will likely gain close attention.Key Support Levels to MonitorIt’s worth keeping an eye on the $22 level, a location on the chart just below Thursday’s close where the shares could encounter support near the double bottom pattern’s neckline and nearby 50-day moving average.A failure to hold above this level could act as a catalyst for a fall down to $19, where bargain-hunting investors could look for buying opportunities near the prominent August and September troughs that form the double bottom.Resistance Areas to WatchIf Intel shares move higher from current levels, investors should monitor how the price responds to the $25 area. This region could attract profit-taking near two swing lows that formed on the chart in December 2022 and February last year.Further upside momentum could see the shares climb to around $30, a level where investors may be happy to place sell orders near a long-term trendline that connects a series of comparable trading levels on the chart from January 2023 through to July this year.The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia.
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