Why Intel Is Seeing A Gap Up Tuesday

Intel Corporation INTC shares are trading higher Tuesday morning after the company announced its intention to take Mobileye public in the U.S. in mid-2022 via an initial public offering (IPO) of newly issued Mobileye stock.

Intel stock saw a nice gap up Tuesday morning after announcing the news, crossing above a key moving average.

Intel was up 4.57% at $53.32 Tuesday at publication.

See Also: Why Intel Shares Are Rising Today

Intel Daily Chart Analysis

• The stock saw a gap higher in a sideways channel, pushing slightly closer to resistance.
• The $68 level has been an area where the stock has found resistance in the past, while the $44 level is somewhere the stock held as support. These areas will likely continue to hold until the stock breaks past one on an above-average volume day.
• The stock trades above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of support, while the 200-day moving average may act as a place of resistance.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 63. This shows the stock is seeing more buying pressure than selling pressure and if the RSI continues to rise, it may reach the overbought area soon.

What’s Next For Intel?

Bullish traders are looking to see the stock form higher lows and head toward the resistance level. Bulls are hoping the stock will go on to break the resistance level and hold above it with a period of consolidation.

Bearish traders want to see the stock begin to fade lower and fall to support. Bears are looking for the stock to first cross below the 50-day moving average and then fall below the $44 level of support. This could show the start of a strong bearish trend.

Photo: Courtesy Intel