Watch These Intel Price Levels After Report New CEO Is Mulling Manufacturing Strategy Shift

New Intel (INTC) CEO Lip-Bu Tan is reportedly considering costly changes to the company’s chip manufacturing business, rattling shares Wednesday, before a rebound Thursday.

Tan is exploring a strategy shift focusing on the next-generation “14A” manufacturing process from “18A,” in an effort to win major customers, but that could see the company write down hundreds of millions or billions of dollars in development costs as losses, Reuters reported.

Intel shares lost about 4% in Wednesday’s session following the report, before climbing close to 3% in Thursday afternoon trading as broader markets gained. The embattled chipmaker’s shares have lost nearly 30% of their value over the past year amid uncertainty surrounding the company’s restructuring plans and deal speculation.

Below, we take a closer look at Intel’s weekly chart and apply technical analysis to identify key price levels to watch.

50-Week Moving Average Provides Resistance

Since breaking down below major support in August last year, Intel shares have traded sideways on above-average trading volume.

More recently, the stock rallied from its multi-month rangebound trading floor throughout June but has run into selling pressure in early July near the 50-week moving average. However, despite the pullback, the relative strength index (RSI) remains above its neutral threshold, potentially indicating a positive shift in momentum.

Let’s identify three key overhead areas on Intel’s chart to watch if the shares start a new move higher, as well as a crucial support level worth monitoring during potential retracements in the stock.

Key Overhead Areas to Watch

The first overhead area to watch sits around $25. A rally into this area could meet resistance near a series of peaks and troughs on the chart stretching back to October 2022.

A close above this level could see the shares climb toward $30. This area could provide overhead selling pressure near the round number and a trendline that connects a range of corresponding trading activity on the chart between November 2022 and June last year.

Further upside in the stock could fuel a move to the $37 level. Investors who have accumulated shares at lower prices may place sell orders in this location near last July’s countertrend high and an array of closely aligned price action on the chart extending back to June 2022.

This area also sits in the same neighborhood as a projected bars pattern upside target that takes the price bars comprising the stock’s advance between February and December 2023 and overlays them from the start of last month’s move higher. This prior move was selected as it followed a rangebound period, offering clues as to how a new uptrend from a trading range could play out.

Crucial Support Level Worth Monitoring

During potential retracements in Intel’s share price, investors might monitor the $19 level. This area could attract strong support near the stock’s long-term trading range between August and June.

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