Intel Corporation (NASDAQ:INTC) has been through some tough times lately. After reporting its earnings for the first quarter of 2024, its stock took a hit, dropping from above $35 to below $30 recently. The company’s guidance for the next quarter wasn’t as good as expected, which worried investors.
Intel predicted its revenue for the second quarter of 2024 would be between $12.5 billion and $13.5 billion. That’s less than what analysts thought it would be. Adjusted earnings per share also fell short of expectations. This news raised doubts about Intel’s ability to deal with its current challenges.
Although some parts of Intel’s business, like Client Computing, did well, other areas, like Mobileye, didn’t perform as expected. This mixed performance has made investors uneasy about Intel’s future.
Despite these challenges, Intel is trying to bounce back. According to recent reports, it’s exploring options like teaming up with Apollo Global Management to build a new plant in Ireland. These efforts reflect Intel’s determination to compete with industry leaders like Taiwan Semiconductor Manufacturing (TSM) and Samsung Electronics in a rapidly evolving landscape.
As Intel charts its course forward, investors have been left wondering: Can Intel’s woes come to an end? Against this backdrop, a closer examination of technical indicators and its stock price trend can provide valuable insights into Intel’s prospects and whether it can overcome its current challenges. So, let’s see what the charts have to say about Intel’s future prospects amidst these challenging times.
Can the previous support hold?On Intel’s long-term weekly chart, we can see that the stock fell from a high above $68 to $25 between April 2021 and the end of 2022. Then in 2023, it saw a bull run that took it from $25 to above $50 by the end of 2023. However, this year has proven disastrous for the stock, especially after March when the stock was trading near $45.
For investors who are already holding the stock at a loss, it is best that they hold it at current levels and sell if the $25 support goes away. Investors who want to buy the stock can do so at current levels while keeping a tight stop loss at $25.
Treading carefully: Short-term caution for bullish tradersSince the stock has fallen from $25 after Q1 results, it has found it tough to trade above $31.5. Unless the stock trades and closes above it, short-term traders should avoid going long the stock. If it does cross above $31.5, one can buy the stock with a stop loss at $28.8 and a profit target of $35.2.
For traders who continue to remain bearish on the stock, they can short it at current levels with a stop loss at $32.3. If the stock starts crashing again, it can fall to its support level again near $25, where they can book profits.
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