Intel (INTC) Share Price Hits 3-Month High Without Clear Catalyst

Intel Corporation (INTC) stocks rose by over 7% yesterday, making them one of the top performers in the S&P 500 index (US SPX 500 mini on FXOpen). As a result, the stock price reached its highest level in three months.

What’s notable is the apparent lack of clear drivers behind the rally. According to Barron’s, the increase in INTC shares could have been triggered by a rating upgrade from Wall Street analysts or a corporate announcement – yet no such developments have occurred. “Nothing new or fundamental,” says Mizuho managing director and technology specialist Jordan Klein.

At the same time, from a technical analysis perspective, the INTC price chart is showing significant developments. Examining these price movements may provide clues as to what’s fuelling the recent rise.

Technical analysis of INTC stocks

For many months, the share price had been confined within a downward channel. However, the psychological level of $20 acted as a strong support – repeated attempts by bears to push the price lower ultimately failed.

Bearish patterns in INTC’s chart may have led to a supply squeeze, as holders were given repeated reasons to sell (particularly against the backdrop of Nvidia’s success). Yet the bullish reversals near the $20 mark suggest that institutional interest was accumulating the stock at what was perceived to be a deeply discounted level – a characteristic sign of the Accumulation Phase in Wyckoff methodology.

It is this lack of available supply that could explain the sudden price rise in the absence of obvious news catalysts.

Since early summer, INTC shares have been making higher highs and higher lows, breaking upwards through the descending channel and beginning to form the early stages of a new bullish trend (highlighted in blue). Should fundamental catalysts emerge in the near term, they may serve as the spark to accelerate this nascent rally.