Intel (INTC) Stock Update: Bears regain control on yesterday’s surprising news | Forexlive

Intel stock dropped 4.25% yesterday, closing at $21.88, following a key announcement: the company may halt marketing of its advanced 18A chipmaking process due to low customer interest, shifting focus to its 14A technology instead.

This decline came despite strength in the broader semiconductor sector—notably, the SMH ETF rose nearly 2% the same day. That divergence signals clear relative weakness, a critical factor for short-term and swing traders.

We had our initial video coverage on Intel stock recently, where we show the bigger picture of the technical analysis situation. This a follow-up.

Key Technical Developments on the INTC Price Chart (4 hour timeframe)

1. Break Below Value Area High (VAH):

   • The value area high (labeled 6) of the sideways range that began after August 2024 earnings is at $22.86.

   • INTC closed well below that level, nearly $1 lower, confirming a failed breakout and return to the value zone.

2. Failed Breakout Above Red Resistance Line:

   • We previously noted that two consecutive 4-hour candles closing below the red resistance line would invalidate the bullish scenario.

   • That has now occurred, albeit with a marginal first candle. Still, the technical damage is evident.

3. Support Not Holding:

   • Price broke down the consolidation zone’s VAH (value area high), crossed down the red resistance line and even the mid purple channel. Bears have regained control and as long as price is below $22.50, bears will have the control.

Next Levels to Watch

• Short-Term Support: Bottom rail of the ascending purple channel.

• Medium-Term Target: Point of Control (POC) at $20.20—a fair value zone with heavy historical volume.

• Long-Term Buy Zone: Around $19.17, the value area low of the larger consolidation range (blue line).

Strategy Suggestions of INTC Stock

If you’re holding a position:

• Conservative traders may want to exit now, even if the stop wasn’t technically breached.

• Hesitant to exit? Consider reducing exposure by selling half, a classic method to manage uncertainty while preserving upside if bulls unexpectedly regain control.

This case illustrates how news alone (like the seemingly significant from Intel yesterday) doesn’t determine direction. Price action does. Bad news with bad price reaction, in the underlying stock, means bad. Good news with good price reaction means good. Good news with a lack of price reaction, or bad news with a lack of price reaction — both, typically, means that the news was insignificatn.

In any case, Intel’s failure to hold key breakout levels, especially while peers rallied, speaks louder than the news itself.

Stay tuned for further updates on INTC as it approaches deeper support zones and the market reveals more.

Invest and/or trade INTC stock at your own risk only.