I always find it interesting when an analyst downgrades a stock, but raises his or her price target. That's the case with Intel (INTC) - Get Intel Corporation (INTC) Report on Friday, which was downgraded to market perform from outperform at Wells Fargo, but the analyst raised his price target to $60 from $55.

The downgrade has Intel stock down about 1% on Friday to $55.38. While rival Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report is also down on the day, Nvidia (NVDA) - Get NVIDIA Corporation Report , the semiconductor sector and the Nasdaq are all higher on the day.

Even with the downgrade, though, the analyst's price target still implies new highs for Intel stock. Can it get there?

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Trading Intel Stock

15-month daily chart of Intel stock.

Even though it's down on the day, Intel stock is bouncing from $55 support. However, the stock continues to bump up against its prior highs near $56 and the top end of its recent channel resistance (blue line).

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In short, Intel stock has been quite strong. Seeing it consolidate just below resistance is constructive and its ability to stay north of $55 is really attractive. However, we saw similar action in June, with Intel stock bumping against $56 for multiple sessions before crumbling lower. 

Shares went on to fall from $56 to sub-$44 for multiple months, a decline of more than 20%. That said, the semis are doing much better right now, at least from a trading perspective. Should Intel stock pull back from these levels, I want to see the $53 to $54 level hold as support.

I don't expect the 20-day moving average to provide a ton of support, as it hasn't been much help over the last few months. However, uptrend support should lend a hand. Below $53 and Intel stock could be heading for the 50-day moving average and may need some time to reset. Below that and $50 is a notable level of support.

Should support hold, $60 could be in sight. To get there, Intel stock needs to push through $56 resistance. If it can, I would love to see Intel push through resistance and then see $56 and the backside of prior channel resistance hold as support on a pullback. This would provide an ideal entry for bulls. 

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.