TAKEAWAYS
- Intel stock is up over 90% in 2023 and could see further growth in 2024
- The stock crossed above its upper Bollinger Band and is now pulling back
- Any signs of a reversal followed by price action that confirms the uptrend is resuming will be an ideal entry point
Intel (INTC) wants to expand its manufacturing facilities and the recent news of the company investing $25 billion in a new manufacturing facility in Israel sent the stock price higher. Intel has been lagging in its manufacturing capabilities, so investing in this space is the right move for the company.
Although Intel's stock has underperformed that of other chipmakers, the stock is up over 90% for the year. It hasn't seen this type of performance since 2003. Intel's stock price is on pace to hit its highest close since January 2022.
Analyzing Intel's Stock Charts
Most of the year's gains started in mid-2023, with the significant gains occurring later in the year. In November 2023, Intel's stock showed signs of greater momentum. From the daily chart of Intel stock (INTC) below, you can see a spike in volume as the stock price rose higher.
CHART 1: DAILY CHART OF INTEL (INTC) STOCK. The stock has risen this year and may be ready for a pullback. Chart source: StockCharts.com. For educational purposes.
INTC has a high StockCharts Technical Rank (SCTR) score of nearly 100. It's been over 70 since October 26, when the company announced its Q3 earnings, which came in better than expected. Since then the stock has been rising consistently and traded above its upper Bollinger Band®, although it's now showing signs of pulling back.
Also note that Intel's performance relative to the Philadelphia Semiconductor Index ($SOX) is above 25%, which indicates that Intel's stock performance relative to the industry group has some catching up to do.
The weekly chart of Intel's stock (see below) shows the stock bounced off a triple bottom, broke above its first resistance level (red dotted line), and then continued to move higher than the general price target following a triple bottom (green dotted line).
CHART 2. WEEKLY CHART OF INTC. After hitting a bottom and bouncing off it three times, Intel's stock appears to be moving to the upside. Will it hit resistance at the $52.50 level? Chart source: StockCharts.com. For educational purposes.
Since breaking above its second resistance level, the stock has been rising rapidly, breaking above first its 100-week simple moving average (SMA) and then its 200-week SMA. There could be a golden cross, that is, the 50-week SMA crossing above the 100-week SMA, in the near future. It's something to watch.
Trading INTC
The stock is showing signs of a slight pullback as the price retreats below the upper Bollinger Band. On the upside, price is approaching its next resistance level, the January 10, 2022 high of around $52.50. If you're considering adding INTC to your portfolio, watch the price action at the following:
- Watch the pullback from the upper Bollinger Band. If price reverses and moves above the prior high but doesn't reach the upper band, it's a warning sign. You want to enter a trade if price moves back above the upper Bollinger Band. In the daily chart, note that a similar scenario occurred in early November.
- Watch the price action at the $52.50 level. If it moves above this level—it's close to that level and could even be a move above the upper Bollinger Band—it would an ideal entry point for a long position.
- A move below the upper band toward the middle band could be a sign of non-confirmation, so keep a stop level just below the middle band.
The bottom line: Set your price alerts to coincide with the cross above the upper Bollinger Band or above $52.50.
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.
Happy charting!
