Intel’s stock price has struggled for most of 2024, even as most of its semiconductor cousins were thriving. Why pay attention to Intel Corp. (INTC) now?
The stock showed up on my StockCharts Technical Rank (SCTR) scan, which is a good enough reason to analyze the stock. The scan is provided at the end of the article.
Vice President JD Vance emphasized the increase in US AI systems manufacturing in the AI summit in Paris. Since Intel is the largest domestic AI chip producer, the stock price got a much-needed boost. gave INTC a boost.
Previously, INTC has been beaten down hard. Weak earnings didn’t help, and the stock has been acting like a sinking ship with no lifeboat since the second half of 2024 (see chart below). But things may be shifting as it looks like the lifeboat may have appeared, bringing the stock a little closer to the surface.
The daily chart of INTC stock below gives a good picture of the price action.
FIGURE 1. DAILY CHART OF INTEL STOCK. The stock has closed higher for four consecutive days. It’s now hitting its first resistance against the 200-day moving average. Look for a breakout off of this level.Chart source: StockCharts.com. For educational purposes.
Note the following points in the chart:
- The stock price has risen for four consecutive days with increasing volume.
- Thursday’s close is battling against its 200-day simple moving average (SMA) resistance.
- The SCTR score has crossed above the 76 level, the first criterion of my scan.
- Intel’s relative performance (price relative/relative strength) against the VanEck Semiconductor ETF (SMH) is now in positive territory (13.02%).
- The moving average convergence/divergence (MACD) has crossed above its signal line and moved above zero.
With all the positive technicals, does it mean INTC stock is a buy at these levels? A break above the 200-day SMA would check one box. Beyond that, I would look at the November 2024 high (see weekly chart below).
FIGURE 2. WEEKLY CHART OF INTC STOCK. After a steep fall in mid-2024, Intel’s stock price is showing signs of recovery. A break above its early November high would be the first sign of a move higher.Chart source: StockCharts.com. For educational purposes.
A break above this high could mean that INTC could float toward its 52-week high. However, there are resistance hurdles to cross — the July 2024 high and January to March 2024 consolidation — before reaching the December 2023 high.
The bottom line: I’ll be monitoring Intel’s stock price closely. I’ve set an alert to notify me when the stock price crosses $26.25. If the indicators in the daily chart still indicate buying pressure is still strong and the trend is bullish, I’ll consider adding INTC to my portfolio.
SCTR Scan
[country is US] and [sma(20,volume) > 100000] and [[SCTR.us.etf x 76] or [SCTR.large x 76] or [SCTR.us.etf x 78] or [SCTR.large x 78] or [SCTR.us.etf x 80] or [SCTR.large x 80]]
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.