Intel (INTC) shares soared Wednesday amid an enormous rally for chip shares after President Trump announced a 90-day pause on «reciprocal» tariffs.

The inventory might also be attracting curiosity following reports the chipmaker tentatively agreed to form a joint venture with Taiwan Semiconductor Manufacturing Firm (TSM) that might run the U.S. firm’s foundry enterprise.

Whereas tariff developments will seemingly proceed to drive near-term sentiment within the inventory, affirmation of a possible take care of TSMC that ramps up home contract chip manufacturing might act as a catalyst for additional upside.

Intel shares have outperformed the S&P 500 for the reason that begin of the yr as of Wednesday’s shut, although the inventory has misplaced 44% over the previous 12 months amid uncertainty surrounding the chipmaker’s restructuring plans and fixed deal hypothesis. The inventory gained 19% on Wednesday to shut at $21.53.

Under, we analyze Intel’s monthly chart and apply technical analysis to establish essential ranges that buyers could also be watching.

Bullish Reversal

After forming a double top between January 2020 and April 2021, Intel shares have trended sharply decrease, with a countertrend rally to the 50-month shifting common (MA) in December 2023 working into speedy promoting stress.

Extra just lately, bears drove a short sell-off beneath final yr’s September low earlier than bulls reclaimed this key degree throughout Wednesday’s bullish reversal, probably setting the stage for follow-though shopping for. Nevertheless, buyers ought to brace for additional volatility forward, with trading volume choosing up within the inventory since August final yr.

Let’s establish key overhead areas to watch and in addition level out a vital zone of support value watching amid the potential for additional tariff-driven volatility.

Key Overhead Areas to Monitor

Comply with-through shopping for from present ranges might initially see the shares climb to round $25. This space on the chart might present promoting stress close to a trendline that hyperlinks a number of peaks and troughs on the chart extending again to mid 1997.

Shopping for above this degree might type a part of a longer-term bullish reversal to $35. Buyers who’ve purchased the inventory’s latest lows might look to dump shares on this area close to the 200-month MA and a multi-year horizontal line the hyperlinks a variety of comparable buying and selling exercise on the chart between January 1999 and September 2023.

Essential Zone of Assist Price Watching

Throughout future strikes decrease within the inventory, buyers ought to hold observe of a vital zone of assist on Intel’s chart between $18.50 and $17. This area will seemingly proceed to draw important consideration from buyers, given it is the placement that marked the inventory’s latest low and sits close to a variety if comparable worth factors stretching again to the late 90s.

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As of the date this text was written, the writer doesn’t personal any of the above securities.