Intel is forming a bunch of bullish chart patterns like the cup-and-handle and golden cross
While the broader semiconductor sector — represented by the VanEck Semiconductor (SMH) ETF and many of its well-known components — are pushing toward new all-time highs, Intel (INTC) remains a notable laggard. Its all-time high of $68 was set way back on Jan. 27, 2020 — more than five years ago. Simply put, waiting around for INTC to catch up would have come at a significant opportunity cost —potentially thousands of basis points lost to more dynamic names in the space. That said, ignoring INTC altogether is not the right move — especially when it begins to show real signs of life, as it did on Tuesday. The stock surged 6.4% on the day, one of its largest single-session gains of the year. While that kind of spike makes it tough to chase in the very short term, the bigger picture is beginning to look more technically constructive. INTC appears to be forming a classic three-month cup-and-handle pattern, with a potential breakout that would target the $28 area — roughly in line with its February high. Adding to the bullish case, both the 50-day and 200-day moving averages have started to stabilize. The 50-DMA, in particular, has started to curl upward and now is approaching the longer-term 200-DMA. If the shorter-term average eventually crosses above the longer one — a pattern known as a “golden cross” — it would mark the first such event since early May 2023. That prior crossover coincided with the early stages of a sizable advance in INTC, so it’s worth watching closely again now. Lastly, INTC is also approaching a major downtrend line drawn from its 2024 highs. A sustained move above this line would mark a significant change in character for a stock that has spent much of the year grinding lower or moving sideways. Combining that with the potential breakout from the cup-and-handle pattern and the moving average setup creates a scenario where upside momentum could begin to feed on itself. If the stock can push decisively through the long downtrend line, the next objective would be the $29–$30 range. That was a meaningful resistance zone from mid-2024 as well as the 38.2% retracement of the entire pictured decline. That area is close to the potential breakout target mentioned above. Putting it all together, the technical roadmap is clear: a breakout could lead to an extension into a well-defined target zone. The bottom line is that INTC has not been the place to be for most of the past year — but that may be changing. It’s not among the leading stocks, but INTC may finally play catch up to its strong counterparts within the semiconductor group. Thus, for now, it’s a name to keep on the radar, especially if it triggers the bullish pattern breakout. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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