Intel (INTC) Stock Price Rises 7% Amid White House RumoursIntel (INTC) Stock Price Rises 7% Amid White House Rumours
Intel (INTC) stock price surged more than 7% yesterday, making it the top performer in the S&P 500 index. The rally came on the back of a report in Barron’s stating that the US government is in talks to acquire a stake in Intel:
→ Intel declined to comment on Barron's report.
→ White House spokesperson Kush Desai stated: “Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration.”
Meanwhile, Bloomberg reported that the Trump administration is negotiating with Intel over a potential US government stake in the company – a move aimed at boosting domestic manufacturing and supporting Intel’s plans to build a new facility in Ohio.
The prospect of state backing for the American chipmaker triggered a sharp bullish impulse yesterday, which could extend into today. In pre-market trading, INTC shares are hovering around $25 – their highest level since March.
Technical Analysis of INTC Shares
Previously, when analysing the INTC chart, we highlighted the significance of the $20 level, which appeared to act as strong support from major market participants. This may have reflected expectations that the government would not abandon a strategically important US company during challenging times – particularly in the context of technological rivalry with China.
For months, INTC shares had been in a downtrend (as shown by the 100- and 200-period moving averages). However, yesterday’s sharp rally now appears capable of reversing that trend:
→ Lower highs and lows at points A, B, and C had suggested a lower low at point D. Indeed, the price came close to setting it after a disappointing quarterly earnings report on 24 July, which led to a large bearish gap at the market open on 25 July.
→ Today, we may see the price break above point C’s high, signalling a potential end to the bearish market structure.
Candlestick analysis this week highlights strong bullish momentum:
→ On Monday (indicated by an upward arrow), trading opened with a bullish gap. However, sellers became active near the upper boundary of the aforementioned bearish gap (marked with a rightward arrow), causing the candle to close with a long upper wick – a sign of weakness.
→ The next two sessions demonstrated that buying pressure persisted – on Tuesday, the stock opened with a bullish gap and rose steadily throughout the day, with Wednesday’s strong candle further confirming buyer activity.
→ Yesterday, the price confidently broke through resistance at $22.25, moving towards the $23.75 level, which could be breached today.
→ The RSI indicator is now at its highest level since February.
The INTC share chart may be signalling that the prolonged bearish market, which began in 2021, is undergoing a significant shift in sentiment. This could mark the early stages of a rally – one that would be fundamentally justified if Intel does indeed secure government backing.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
