Intel stock price levels to watch after CEO shakeup

Intel (INTC) shares are expected to remain on the watch list on Tuesday, a day after the struggling chipmaker announced that CEO Pat Gelsinger has resigned and will be replaced by two interim co-CEOs while it searches for a permanent replacement .

Gelsinger, who joined the chip giant in February 2021, has come under increasing pressure this year as the company implemented a turnaround plan that resulted in significant job losses and the divestment of some assets. Intel is struggling to regain lost market share from its chipmaker rivals and restore investor confidence.

Since the company reported a better-than-expected second-quarter net loss in August, there have been weeks of speculation about strategic changes and reports of deal activity, but these have failed to boost investor confidence. Although Intel shares have recovered slightly over the past month, they have still lost more than half of their value since the beginning of the year.

The stock rose as much as 6% on Monday following news of Gelsinger’s departure, but ended the session down 0.5%. The stock was little changed at around $24 in premarket trading on Tuesday.

Below we take a closer look at Intel’s chart and turn to technical analysis to highlight some key price levels worth paying attention to.

Sales volume increases

After falling more than 25% in early August, Intel shares moved within an orderly uptrend channel, with price hitting both sides of the pattern several times since then.

The stock last fell toward its 50-day moving average (MA) on Monday, hitting its highest level in more than a month, suggesting there is a selling conviction behind the move.

Meanwhile, the Relative Strength Index (RSI) continues to retreat from overbought levels and fell below 50 yesterday, indicating weakening price momentum.

Let’s look at the key support and resistance levels on the Intel chart that investors are likely to keep an eye on.

Key support levels to keep an eye on

A decisive drop below the 50-day moving average could see shares fall to around $22. Investors could look for buying opportunities in this area near the opening price of the early August gap, which also coincides with a number of similar trading levels on the chart between late August and early November.

Selling below this level opens the door for a retest of lower support at $18.50, an area around 23% below Monday’s close where bargain hunters could look for entry points near the September low.

Important resistance levels to monitor

The first overhead value to monitor is around $30. This area of ​​the chart is where the resistance of the 200-day MA and the lower area of ​​a tight consolidation period that formed on the chart between May and June converge.

Finally, a more bullish move could propel a rally to the $37 level. Investors who bought Intel shares at lower prices may be looking to lock in profits near a multi-month trend line connecting a series of peaks on the chart from June 2023 to July this year.

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At the time of writing, the author does not own any of the securities mentioned above.