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Intel shares soared Wednesday amid a huge rally for chip stocks after President Trump announced a 90-day pause on many of the tariffs that had rattled financial markets.
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Wednesday’s bullish reversal saw the stock reclaim the September low, potentially setting the stage for follow-through buying.
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Investors should monitor key overhead areas on Intel’s chart near $25 and $35, while also watching a crucial zone of support between $18.50 and $17.
Intel (INTC) shares soared Wednesday amid a huge rally for chip stocks after President Trump announced a 90-day pause on “reciprocal” tariffs.
The stock may also be attracting interest following reports the chipmaker tentatively agreed to form a joint venture with Taiwan Semiconductor Manufacturing Company (TSM) that would run the U.S. company’s foundry business.
While tariff developments will likely continue to drive near-term sentiment in the stock, confirmation of a potential deal with TSMC that ramps up domestic contract chip manufacturing could act as a catalyst for further upside.
Intel shares have outperformed the S&P 500 since the start of the year as of Wednesday’s close, though the stock has lost 44% over the past 12 months amid uncertainty surrounding the chipmaker’s restructuring plans and constant deal speculation. The stock gained 19% on Wednesday to close at $21.53.
Below, we analyze Intel’s monthly chart and apply technical analysis to identify crucial levels that investors may be watching.
After forming a double top between January 2020 and April 2021, Intel shares have trended sharply lower, with a countertrend rally to the 50-month moving average (MA) in December 2023 running into immediate selling pressure.
More recently, bears drove a brief sell-off below last year’s September low before bulls reclaimed this key level during Wednesday’s bullish reversal, potentially setting the stage for follow-though buying. However, investors should brace for further volatility ahead, with trading volume picking up in the stock since August last year.
Let’s identify key overhead areas to monitor and also point out a crucial zone of support worth watching amid the potential for further tariff-driven volatility.
Follow-through buying from current levels could initially see the shares climb to around $25. This area on the chart may provide selling pressure near a trendline that links multiple peaks and troughs on the chart extending back to mid 1997.
Buying above this level could form part of a longer-term bullish reversal to $35. Investors who have bought the stock’s recent lows may look to offload shares in this region near the 200-month MA and a multi-year horizontal line the links a range of comparable trading activity on the chart between January 1999 and September 2023.