Watch These Intel Price Levels as Chipmaker Set to Report Earnings This Week

Intel (INTC) Intel shares will be in the spotlight this week as the embattled chipmaker gets set to release its second-quarter results on Thursday.

Investors will be looking for updates about the company’s foundry business after reports surfaced earlier this month that recently installed CEO Lip-Bu Tan is considering a shift in the company’s contract chipmaking business. The possible changes could lead Intel to write off hundreds of millions or even billions of dollars’ worth of chipmaking technology as a loss, according to reports.

Intel shares have gained 20% since last month’s low and trade 15% higher since the start of the year as of Friday’s close, boosted by hopes that the chipmaker can navigate a successful turnaround under Tan’s leadership after months of deal speculation and strategic restructuring.

Below, we take a closer look at Intel’s chart and use technical analysis to identify crucial price levels worth watching out for ahead of the quarterly report.

Ascending Channel in Focus

After attracting buying interest around the floor of a multi-month trading range, Intel shares have trended higher within an ascending channel. More recently, the stock has retraced toward the pattern’s lower trendline on declining trading volume, indicating apprehension ahead of the highly anticipated earnings report.

However, in a win for the bulls, the relative strength index remains above neutral territory, signaling positive price momentum.

Let’s identify crucial support and resistance levels on Intel’s chart that investors will likely be watching.

Crucial Support Levels to Watch

A breakdown below the ascending channel’s lower trendline could see the shares initially test support around $22. This area, currently just above the closely watched 200-day moving average, may attract buyers near a horizontal line that stretches back to the stock’s notable gap lower last August.

Selling below this level opens the door for a retest of lower support at $19. Investors could view this region as a high probability buying area near a trendline that connects multiple troughs on the chart between August and June and marks the floor of the stock’s multi-month trading range.

Resistance Levels to Monitor

A breakout above the ascending channel’s upper trendline could see the price climb to overhead resistance around $26. The shares may run into selling pressure in this location near three prominent peaks that developed on the chart between November and March.

Finally, a more bullish move in Intel shares could propel a rally toward $30. Investors who bought at lower prices may decide to lock in profits at this level near the psychological round number and a period of sideways drift that preceded last August’s stock gap lower.

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As of the date this article was written, the author does not own any of the above securities.