Current trend

Shares of Intel Corp., the American giant in the field of information technology, are correcting at the 22.00 mark.

Experts increasingly agree that the company's pursuit of competitors in the field of developing processors based on artificial intelligence (AI) was the wrong strategy: despite the efforts expended, Intel Corp. is still far behind leaders, such as NVIDIA Corp. Last month, the company announced plans to cut costs by 17.0% to 21.5 billion dollars, as well as to reduce the workforce by 15.0%, or about 17.5 thousand people. Dividend payments were also suspended, as a result of which a large share of investors left the asset, which caused a significant reduction in trading volumes.

On October 31, the company will publish its third-quarter financial report: analysts' forecast for revenue is 13.02 billion dollars, which is higher than the 12.83 billion dollars in the previous quarter, but significantly lower than the 14.2 billion dollars over the same period last year. In addition, experts predict the first loss per share since March 2023 of ˗0.0237 dollars, much lower than the 0.0200 dollars in the previous quarter and the 0.4100 dollars over the same period a year earlier.

Support and resistance

On the D1 chart, the asset is trading in an ascending channel with boundaries of 26.60–21.60 and is preparing to break through the support line.

Technical indicators have again updated their sell signal: the EMAs fluctuation range of the Alligator indicator is directed downwards, and the AO histogram is forming correction bars, staying very close to the transition level.

Support levels: 21.40, 18.50.

Resistance levels: 22.90, 26.60.

Trading tips

If the asset continues to decline and the price consolidates below the support level of 21.40, short positions can be opened with a target of 18.50 and a stop-loss of 22.30. Implementation period: 7 days and more.

In case of a reversal and continuation of the global growth of the asset, as well as consolidation of the price above the resistance level of 22.90, one may open long positions with a target of 26.60 and a stop-loss of 21.00.