Saad Ullah
Intel (INTC) stock has suffered a sharp pullback after recently touching $32, retreating nearly 13% in just a few trading sessions. The selloff reflects aggressive profit-taking, with trading volume reaching 129.6 million shares - one of the highest daily totals this year. This surge in activity suggests both institutional and retail investors are actively repositioning their holdings.
Technical Analysis Shows Critical Levels
The daily chart reveals several key developments. The stock is now testing a crucial support area at $28–29, and a clean break below this level could expose further downside risk toward $26 and potentially $24. Meanwhile, the rejection from $32 establishes $30+ as critical resistance that bulls must reclaim to restore upward momentum.
According to AfterPullback trader analysis, the latest decline came with extraordinary volume, underlining the strength of selling pressure currently hitting the semiconductor giant.
Despite this pullback, INTC remains within a broader uptrend that began in April when shares bounced from the $20 level.
Market Forces Driving the Decline
The retreat follows a multi-week rally amid broader semiconductor sector volatility. Several factors are weighing on investor sentiment, including concerns about demand cycles, competitive pressure in AI chips, and cautious positioning ahead of macroeconomic events such as Federal Reserve policy updates. These dynamics have created a perfect storm for profit-taking among traders who rode the stock higher from its April lows.
What Comes Next
A quick recovery above $30 would suggest buyers are stepping back in, potentially stabilizing sentiment and paving the way for another attempt at higher levels. However, failure to defend the $28–29 support zone could accelerate selling pressure, with $26 emerging as the next downside target.
Investors should closely monitor semiconductor sector trends and Intel's upcoming earnings results for clarity on whether this move represents a short-term shakeout or the beginning of a deeper correction in the stock.
Saad Ullah
