Well, it might be a little early to anoint Intel (INTC) a leader, but there’s no denying a significant breakout in the chip stock above key price resistance. On November 15, 2022, INTC opened at 30.72 and the stock hasn’t seen an open or close above that level since. There were intraday highs 30.79 on February 3rd and 31.00 on March 17th, but both of those breakout attempts ultimately failed. Yesterday, however, volume accelerated and there was no such failure:
The clear positive on this chart is INTC’s breakout above stubborn price resistance. That sets INTC up for a further advance and I’d be watching two key levels of support for confirmation that an uptrend is in place. The first would be broken resistance/now support at 30.72. That typically holds, but I’ve seen plenty of instances where it doesn’t. So I believe the biggest support is the now-rising 20-day EMA, currently at 28.88. I would fully expect INTC to trade above its 20-day EMA for the foreseeable future. Its relative strength has also improved over the past month and has been accompanied by accelerating volume. I wouldn’t call INTC a leader just yet, but it’s certainly improved among its peers.
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Happy trading!
Tom
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
