Watch These Intel Stock Price Levels as Chipmaker Continues to Rally

Key Takeaways

Intel ( INTC ) shares rose again Tuesday after surging more than 12% last week as investors bid up the stock following a strategic update and ongoing deal rumors .

Last Tuesday, the embattled chipmaker said it plans to spin off its venture fund as a standalone entity while remaining an investor in an effort to improve efficiency across the business. Later in the week, sentiment received a further boost after a report surfaced that the company might be a takeover target .

Intel shares were up 2.5% at around $22 in early-afternoon trading Tuesday. Despite the recent rally, the stock has lost more than half its value over the past 12 months amid investor skepticism about the company's ability to capture a greater share of the booming artificial intelligence (AI) chip market.

Below, we break down the technicals on Intel’s weekly chart and point out crucial price levels worth watching out for.

Bullish Engulfing Pattern Points to Possible Double Bottom

Intel shares staged an impressive reversal last week to form a bullish engulfing pattern , a two-bar candlestick formation that signals a positive shift in investor sentiment. Importantly, the pattern formed around the same location on the chart as the early-September low, setting the stage for a potential double bottom .

Furthermore, last week’s rally occurred on the highest weekly volume since early December, indicating buying conviction from larger market participants, such as institutional investors and hedge funds.

Let’s identify three overhead areas that investors may be watching if the chipmaker’s stock moves higher and also point out a key support level to track if the stock gives back last week’s gains.

Crucial Overhead Areas to Follow

Follow-through buying could initially see the shares climb to around $25. This area on the chart may provide resistance near the October 2022 and February 2023 troughs, which also closely align with the the November 2024 peak .

A decisive close above this area may see the shares climb to the $30 mark. Investors could seek exit points here near a trendline that connects a range of comparable highs and lows on the chart from September 2022 to June last year. This region also roughly aligns with the 50% Fibonacci retracement level when stretching a grid from the December 2023 high to September 2024 low.