Today, after the US closing bell, we will be receiving the earnings results of Intel Corporation (NASDAQ: INTC). The company had already named it’s new CEO, Pat Gelsinger, who previously worked at the company for 30 years. IT won’t be an easy task, as he will have to try and get Intel its throne back, as the largest US chip maker by market cap. However, the competition is huge, and with Nvidia Corp, Advanced Micro Devices Inc. and Apple developing their own chips, it won’t be an easy task to do. Investors are also waiting for Intel’s decision on their plans of outsourcing the chip production to Taiwan.
The technical picture of INTC shows that it continues to balance above a short-term tentative upside support line drawn from the low of December 29th. At the same time, from an even more short-term perspective, the stock has been coiling up since January 13th. Although the share price is still above that upside line, we will take a cautiously-bullish approach, given the small triangle pattern, where the stock is currently trading in.
If INTC breaks through the upper side of the aforementioned triangle and moves above the current highest point of January, at 60.24, this will confirm a forthcoming higher high, possibly clearing the way for a further price-acceleration. The stock may then travel to the 61.92 obstacle, a break of which could set the stage for a test of the 64.29 level, marked by the high of June 10th, 2020.
The RSI and the MACD are currently flat. However, the RSI remains above 50 and the MACD, although below its trigger line, remains well above zero. The two oscillators are somewhat in support of the above-mentioned scenario.
Alternatively, if the stock breaks the lower side of the triangle and then falls below the previously-discussed upside line, that might temporarily spook new buyers from entering, especially if the price falls below the 53.84 hurdle, marked by the high of January 12th. We will then aim for a possible move to the 51.31 hurdle, a break of which could clear the path to the 49.33 zone, or even to the 48.57 area. Those levels mark the lows of January 4th and December 30th respectively.
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