Intel’s share price is trapped within a narrow trading range as the US technology stock consolidates towards the best levels on the month so far.
Intel stock price analysis shows that the next strong directional move should take place once price breaks from a horizontal price channel.
Intel medium-term price trend
Intel’s share price remains technically bullish over the medium term while price trades above the $56.00 resistance level.
Fundamental analysis shows that despite the recent rise from the $43.00 area, its share price is still relatively undervalued at current levels on a P/E and EBITDA basis.
INTC technical analysis shows that a bearish head-and-shoulders pattern is still present on the daily time frame.
According to the size of the pattern Intel’s share price could decline towards the $13.00 level, although this seems unlikely given its bullish fundamental outlook.
Bulls would need to move price above the $70.00 resistance level to invalidate the bearish pattern. If this scenario occurs a rally towards the $90.00 level should be expected.
Intel short-term price trend
INTC technical analysis shows that the short-term trend is bullish while the price trades above the $58.00 support level.
The one-hour time frame currently shows that price remains trapped with a horizontal price channel.
Horizontal price channels often indicate periods of extended sideways trading action before a major technical breakout occurs.
According to the size of the horizontal price channel a $7.00 directional move should be expected once a breakout takes place.
It is noteworthy that the channel is currently located between the $55.00 and $62.20 levels.
Overall, watch out for more gains in the stock while price trades above the $55.00 support level.
Intel technical summary
INTC technical analysis highlights that price is trapped within a horizontal price channel. Bulls need to move price above the $70.00 level to negate a large bearish reversal pattern.