Intel (INTC) Price Forecast: Breakout Holds as Bulls Defend Support

Long-Term Breakout and Bullish Structure

A long-term breakout supported by short-term price action is developing in the shares of Intel Corporation (INTC). It completed a breakout above a long-term downtrend line in early January before spiking to a high of $54.60. The advance subsequently triggered a bullish reversal with a daily close above a lower swing high at $51.28 from December 2023.

Corrective Pullback Finds Support

Following that high, price entered a bearish correction, pulling back to a low of $42.28. That drop completed a 61.8% Fibonacci retracement at $42.46. The subsequent bounce generated a lower swing high at $51.49, followed by another decline. This time support was seen last week at a pullback low of $42.88. That is a slightly higher swing low relative to the prior pullback low at $42.28 and it found support near the 50-day moving average and 10-week moving average.

This puts INTC shares within the first pullback following key upside breakouts as it tests long-term support near prior resistance. Two scenarios look likely from here. Either support holds at last week’s low, leading to an advance to challenge – and likely eventually recover – the $54.60 high, or a deeper pullback to touch a long-term downtrend line. That line is estimated to lie near $40.50.

Bullish Response and Trend Continuation Signals

Support near the 50-day moving average was confirmed over the past three days, including Tuesday, resulting in an upside breakout to a four-day high of $46.10. That confirmed a bullish reversal off support near the 50-day moving average. In addition to being the first pullback since the structure breakouts, the current pullback to test support near the 50-day moving average is the first since the average was reclaimed at the beginning of the year. The bullish response suggests that the bearish correction may have ended. If so, it would also suggest an acceleration in overall bullish momentum as the resulting higher swing low shows an increased slope.

Trend Channel and Bullish Trigger Levels

INTC has been progressing in a rising trend channel for about four months, with resistance tested near the middle of the channel with Tuesday’s high of $46.10. A weekly bullish reversal would trigger on a rally above last week’s high of $46.83. That would also mark a recovery of the center line and increase the chance for an eventual upside breakout of the bull trend.

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