Can Intel Stock Hold Key Support After Earnings Rally?

Intel stock is finally getting some pep in its step after earnings, but it will be able to run a lot further if it can hold above a key support area.

When it comes to semiconductor stocks, Intel  (INTC) – Get Free Report has certainly lost a bit of its reputation vs. its peers.

Nvidia  (NVDA) – Get Free Report and Advanced Micro Devices  (AMD) – Get Free Report are shining bright in the semiconductor spotlight, despite the recent weakness in the latter.

Other names have continued to trade well too, like Broadcom  (AVGO) – Get Free Report, Super Micro Computer  (SMCI) – Get Free Report and more recently Micron  (MU) – Get Free Report.

Over the past year, Intel stock is down 31%, lagging all of its peers listed above. However, it’s trying to claw back some of those losses on Friday.

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Shares were up 9% at the session high and are currently up 3.5% at last glance as the company rallies after its earnings report. A better-than-expected loss and revenues that exceeded consensus expectations has investors in good spirits.

The news may be bullish for investors, even amid a backdrop of other issues. For now though, let’s see how the charts look.

Trading Intel Stock on Earnings

Intel stock opened near $32 this morning, putting it above the 10-day, 21-day and 200-day moving averages, as well as a key resistance area near $31.

The fourth-quarter high at $31.34 has served as notable resistance for several months now, as has downtrend resistance (blue line).

The technicals were looking pretty good when shares were trading near $32.50. Now pulling back though and bulls will really want to see Intel stock hold up above the $31 area.

This level has kept shares in check for most of the year, with the exception of an upside burst in early April.

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If the $31 area can’t act as support, the gap-fill is back in play at $30. Below that and this week’s low near $28.50 is vulnerable for a retest.

On the upside, it’s quite simple. Bulls need to see a move over $32.50 for a sustained rally to occur. If it happens, that could open the door up to the April high at $33.84.

Above that level and $35 or higher is possible. 

For now, let’s see if $31 holds as support.