Intel (INTC) shares surged in extended trading on Monday after the embattled chipmaker’s CEO Pat Gelsinger provided an update on the 澳洲幸运5官方开奖结果体彩网:company’s plans to slash costs and 澳洲幸运5官方开奖结果体彩网:turn around its business.

Gelsinger said in a note to employees released after the closing bell that Intel has made progress in lowering costs through layoffs, trimming its real estate footprint, and selling part of its stake in its Altera programmable chip unit, among other steps.  The company also plans to turn its chipmaking arm into a separate subsidiary and said it would produce chips for Amazon (AMZN), as well as the U.S. military.

Intel shares rose 7.9% in after-hours trading to $22.56. The stock had risen more than 6% during regular trading hours following a report from Bloomberg on the contract to produce custom chips for the military. Even with Monday’s gains, the stock has shed more than half its value🌌 since the start of the year.

Below, we’ll take a closer look at Intel’s monthly chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify key historical price levels worth 👍watching.

Potential Hammer Candlestick Forming

After encountering significant selling pressure at the closely watched 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) in December last year, Intel shares have trended sharply lower, falling as much as 64% since that time. Importantly, 澳洲幸运5官方开奖结果体彩网:trading volumes have increased during the stock’s sell-off, indicating c🎃onviction behind🐲 the move. 

Although the shares hit a new multi-year low this month, they have made a partial recovery to currently trade near their September high, potentially forming a hammer—a candlestick pattern that suggests a bullish reversal.

Looking ahead, investors should monitor several key price levels on Intel’s c𓄧hart that will likely gain close attention.

Important Support Levels to Watch

Firstly, it’s worth keeping a close eye on the $20 area, a price level the stock reclaimed on Monday. This location on the chart finds a 澳洲幸运5官方开奖结果体彩网:confluence of support from the 澳洲幸运5官方开奖结果体彩网:psychological round number and a 澳洲幸运5官方开奖结果体彩网:horizontal line that connects a range of historical trading levels in the chipmaker’s stock from 1997 to 2012. Confirmation of a September hammer pattern at this key level would register a significant win for the bulls.

However, a continuation of Intel’s downtrend could see the shares fall to around $17, where they would likely find support from a period of 澳洲幸运5官方开奖结果体彩网:consolidation in the stock between 1997 and 1998, an area that a🐟lso closely aligns with troughs i🅷n 2006 and 2010.

Longer-term weakness may bring the $14 region into play, an area on the chart where 澳洲幸运5官方开奖结果体彩网:buy-and-hold investors would likely seek entry points near prominent 澳洲幸运5官方开奖结果体彩网:swing lows that formed during the 澳洲幸运5官方开奖结果体彩网:dotcom bubble correction of 2002 and 澳洲幸运5官方开奖结果体彩网:great recession in 2009.

Key Overhead Levels to Monitor

If an upside reversal takes place in Intel shares, investors should initially keep an eye on the $25 level, a key overhead area where the stock could run into 澳洲幸运5官方开奖结果体彩网:resistance from a horizontal line linking multiple 澳洲幸运5官方开奖结果体彩网:peaks and troughs between 1997 and February last year.

A move above this area could see the shares climb to $35, where they may encounter selling pressure near a trendline joining a series of 澳洲幸运5官方开奖结果体彩网:price action from 1999 ꦇto October 2023 with the closely-aligned 200-day moving average.

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