Current trend

Shares of Intel Corp., a giant in the development and sale of electronic devices and computer components, are trading in a correction trend at 30.64.

The company is experiencing difficulties with expanding its production infrastructure. Thus, yesterday, it became known that the construction of the Fab 38 chip manufacturing plant in Israel, worth 25.0B dollars, due by 2028, was suspended. In December, the country’s government allocated a grant of 3.2B dollars for the project.

Among the positive news, there is a recent report by analysts at Bank of America Corp., according to which the Q2 volume of personal notebook shipments will increase by 12.0%, higher than the estimates of 5.0% a month earlier. Experts revised their forecasts after the indicator added 15.0% in May amid increased demand in the commercial and consumer segments. These forecasts may be a positive signal for the company, whose share in the global supply of laptop processors is 37.0%.

The quarterly report is due on July 25, and revenue may be 12.98B dollars, up from 12.9B dollars previously, and earnings per share (EPS) – 0.112 dollars, down from 0.130 dollars a year earlier.

Support and resistance

On the daily chart, the trading instrument is moving below the support line of the downward channel 38.00–30.60.

Technical indicators keep a sell signal: the EMA oscillation range of the Alligator indicator is directed downwards, and the AO histogram forms correction bars below the transition level.

Resistance levels: 32.00, 35.00.

Support levels: 29.80, 26.00.

Trading tips

Short positions may be opened after the price declines and consolidates below 29.80, with the target at 26.00 and stop loss 32.00. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 32.00, with the target at 35.00. Stop loss — 30.00.