Watch These Intel Price Levels as Stock Plunges on Weak Earnings, Soft Guidance

Intel (INTC) shares plunged successful extended trading Thursday aft nan chipmaker reported quarterly results that missed Wall Street quarterly estimates, issued soft current-quarter guidance, and unveiled a $10 cardinal cost-cutting scheme that includes slashing 15% of its workforce.

The stock, which has tumbled much than 43% from its December 2023 high, has travel nether dense investor scrutiny this twelvemonth amid nan chipmaker’s sizable finance successful manufacturing accommodation to ramp up its loss-making foundry business, arsenic it intends to seizure marketplace stock from statement silicon elephantine Taiwan Semiconductor Manufacturing Company (TSM). 

Shares fell 19% to $23.56 successful after-hours trading, aft shedding much than 5% during regular trading hours amid a broader selloff for spot stocks.

Below, we zoom retired connected Intel’s monthly floor plan to place historically important value levels that whitethorn travel into attraction amid nan stock’s expected post-earnings drop.

Selling Conviction

Intel shares person continued to inclination sharply little aft breaking down from a ten-month ascending channel successful April. More recently, an effort by bulls to reclaim nan 200-month moving mean successful July proved futile, pinch nan banal closing adjacent its monthly low.

Importantly, above-average trading volume has accompanied nan decline, indicating condemnation by larger marketplace players.

Monitor These Crucial Historical Support Levels

Amid nan anticipated earnings-driven plunge, investors should show 3 important value levels connected nan floor plan wherever Intel shares whitethorn pull bargain hunters.

The first sits astatine $26. Although expected to unfastened beneath this value connected Friday, it’s worthy watching if buyers tin adjacent nan banal supra a multi-year horizontal line that links aggregate peaks and troughs from March 2005 each nan measurement to March past year.

A breakdown beneath nan supra level could spot nan shares autumn to astir $20, wherever they would apt pull buying liking adjacent nan psychological information number and an important trendline that connects a scope of comparable value action from nan tallness of nan dot-com bust successful September 2001 done to February 2013.

An ongoing trading rout could lead to a trial of nan $13 area, a location connected nan floor plan past visited astatine nan depths of nan great recession betwixt 2008 and 2009.

successful summation to watching nan levels outlined above, investors should besides show for oversold readings successful nan relative spot scale (RSI). The past clip nan parameter bottomed retired beneath nan 30 period successful September 2022, Intel shares rallied astir 95% complete nan pursuing 15 months.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.

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