Check out these Intel stock price levels after Chipmaker soars to a two-month high

Shares rose more than 6% on Monday

Key learning points

• Shares of Intel rose to a two-month high on Monday as analysts said the company could benefit from growing interest in AI personal computers and other hardware trends related to the technology.

• Intel’s share price has broken above the upper trendline of a narrow trading range on the highest share turnover since June 21, indicating bullish conviction behind the move.

• Amid further gains, Intel shares could face resistance at $35.50, $39, $42. and $45.50.

• Short-term overbought conditions could see the stock price return to the previous trading range high trendline around $32, which has now likely moved from an area of ​​resistance to support.

Intel (INTC) shares rose more than 6% on Monday to a two-month high, as analysts at Melius Research said the chipmaker is for the better of growing interest artificial intelligence (AI) personal computers and other hardware trends related to the technology. The stock was the biggest gainer on the Nasdaq 100 and Dow Jones Industrial Average on Monday.

Below we take a closer look at the graph and the use of Intel technical analysis to highlight the key levels to look out for in upcoming trading sessions.

Breakout from narrow trading range

Despite the 50 days moving average (MA) crossing below the 200 day MA to form an ominous one death cross In early May, Intel shares were trading within a narrow range range with several volume peaks since then.

Shares of the chipmaker on Monday gap above the highest trendline of the trading range on the highest stock turnover since June 21, indicating bullish conviction behind the breakout. Moreover, the relative strength index (RSI) has moved into overbought territory above the 70 thresholds, confirming strong price momentum.

Keep an eye on these chart levels as they continue to strengthen

Amid a continued rise, investors should keep an eye on these four key levels where the stock could encounter overhead resistance.

The first area to watch is around $35.50, an area on the map that links prices near a minor counter trend retracement during the stock’s sharp downward move in April.

If the stock breaks this level, it could move higher to retest a key horizontal line almost $39 connecting the prominent September 2023 swing high with the 200-day MA.

A close above this region could see shares rise to around $42, where they are likely to face sellers near a trendline connecting four price drops between December 2023 and March this year.

Finally, a longer-term rally could take the price back to $45.50, close to a horizontal line connecting different prices. peaks for a period of five months, from November to April.

The story continues

Overbought conditions in the short term

While the RSIs bought over The reading confirms strong price momentum, but also increases the likelihood of a near-term retracement fill the gap.

During temporarily withdrawalsInvestors should keep an eye on the upper trendline of the previous trading range around $32, which has now likely turned from an area of ​​resistance to support.

The comments, opinions and analyzes on Investopedia are for informational purposes only. Read our warranty and limitation of liability For more information.

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

Read the original article Investopedia.