:max_bytes(150000):strip_icc()/MarketBlogImage-final-6ac06c7b9250446a8e86c566b11e02e1.png)
Tim Smith has 20+ years of experience in the financial services industry, both as a writer and as a trader.
Updated August 02, 2024 10:13 AM EDT Source: TradingView.com.UPDATE: This article has been updated with share price information from early trading on Friday.
Intel (INTC) shares plunged after the chipmaker reported quarterly results that missed Wall Street quarterly estimates, issued soft current-quarter guidance, and unveiled a $10 billion cost-cutting plan that includes slashing 15% of its workforce.
The stock, which has tumbled about 60% from its December 2023 high, has come under heavy investor scrutiny this year amid the chipmaker’s sizable investment in manufacturing facilities to ramp up its loss-making foundry business, as it aims to capture market share from contract silicon giant Taiwan Semiconductor Manufacturing Company (TSM).
Shares were down 29% at $20.72 about half an hour into Friday's trading session.
Below, we zoom out on Intel’s monthly chart to identify historically significant price levels that may come into focus amid the stock’s post-earnings drop.
Intel shares have continued to trend sharply lower after breaking down from a ten-month ascending channel in April. More recently, an attempt by bulls to reclaim the 200-month moving average in July proved futile, with the stock closing near its monthly low.
Importantly, above-average trading volume has accompanied the decline, indicating conviction by larger market players.
Amid the earnings-driven plunge, investors should monitor three crucial price levels on the chart where Intel shares may attract bargain hunters.
The first sits at $26. Though the stock opened lower than this level Friday, it’s worth watching if buyers can close the stock above a multi-year horizontal line that links multiple peaks and troughs from March 2005 all the way to March last year.
A breakdown below the above level could see the shares fall to around $20, where they would likely attract buying interest near the psychological round number and an important trendline that connects a range of comparable price action from the height of the dot-com bust in September 2001 through to February 2013.
An ongoing selling rout could lead to a test of the $13 area, a location on the chart last visited at the depths of the great recession between 2008 and 2009.
In addition to watching the levels outlined above, investors should also monitor for oversold readings in the relative strength index (RSI). The last time the indicator bottomed out below the 30 threshold in September 2022, Intel shares rallied around 95% over the following 15 months.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above securities.
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Description Related Articles Watch These Intel Stock Levels as CEO Reportedly Preparing Plans to Sell Assets, Cut Costs Watch These Nvidia Stock Price Levels Amid Post-Earnings Slide Nvidia Stock Price Levels to Watch as Earnings Report Looms Watch These Broadcom Stock Price Levels Ahead of Chipmaker's Earnings Report
:max_bytes(150000):strip_icc()/GettyImages-2168167187-85ed9d8773544c2e8933e8e8e0cf8819.jpg)
The September Effect is a calendar anomaly that refers to historically weak stock market returns for the month of September.
Large language models use artificial intelligence (AI) technology to understand and generate language that is natural and human-sounding. Learn how large language models work and the different ways in which they’re used.
An unemployment claim is a request an individual makes to a state government to receive temporary payments after having been laid off from a job.
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock, serving as a profitability indicator.
A house maintenance requirement is the level of minimum margin account equity that is required by a brokerage firm.
A bottleneck is a point of congestion in a production system that prevents the system from functioning at full capacity. Learn more about bottlenecks in manufacturing.
We and our 100 partners store and/or access information on a device, such as unique IDs in cookies to process personal data. You may accept or manage your choices by clicking below, including your right to object where legitimate interest is used, or at any time in the privacy policy page. These choices will be signaled to our partners and will not affect browsing data.
Store and/or access information on a device. Use limited data to select advertising. Create profiles for personalised advertising. Use profiles to select personalised advertising. Create profiles to personalise content. Use profiles to select personalised content. Measure advertising performance. Measure content performance. Understand audiences through statistics or combinations of data from different sources. Develop and improve services. Use limited data to select content. List of Partners (vendors)
