Peter Smith
Intel (INTC) has delivered one of its most impressive rallies in years, climbing nearly 90% from its lows. The comeback has been both powerful and sustained, but now the chipmaker sits at a technical crossroads that could determine what happens next.
Strong Recovery Meets Resistance
Market analyst Bet on it & keep profits highlighted that Intel's surge has pushed the stock right into its monthly resistance zone - a level where sellers have historically stepped in. Investors who bought near the $20 support area are sitting on nice gains, but breaking through this ceiling won't be easy.
The green band near $18–20 acted as a solid base where buyers accumulated shares before the rally took off. The red zone around $36–38 represents a well-known ceiling that previously capped rallies back in 2014 and during 2016–2017. Trading around $37.4, Intel is right in the middle of this resistance, making it a level worth watching closely.
Chart Analysis and Market Context
Intel's chart reveals a sharp V-shaped recovery from its 2024 lows. If the stock breaks cleanly above $38, the next targets could stretch toward $44–50, where additional resistance sits. But if it fails to push through, a pullback to $32 or even $28 wouldn't be surprising, especially if traders start taking profits. The rally has been steep and sustained, showing strong demand, though that same strength also increases the chance of a near-term breather.
What's Driving the Rally
Several factors are fueling Intel's climb. Optimism around semiconductors has grown as AI-driven computing continues to drive demand across the industry. Investors are rotating back into undervalued chipmakers like Intel after years of lagging behind AMD and Nvidia. There's also growing hope that Intel's restructuring efforts and strategic focus on AI and foundry services could help the company regain its competitive edge.
What's Next: Extension or Pause?
Intel's rally shows renewed confidence, but whether it continues depends on breaking past that $38 barrier. Short-term traders might see this as a natural spot to cash out. Long-term investors, on the other hand, could view any dip as a buying opportunity if the fundamentals hold up. The coming weeks will be telling - either Intel pushes toward $40–50, or it takes a breather after its remarkable 90% run.
Peter Smith
