
Intel Stock Could Head to $35 After Reclaiming Key Technical Support
Shares of Intel (INTC) - Get Report have risen as much as 9% in just the past couple of weeks, climbing from a low of $29.50 on May 19 to Friday's session high of $32.24. And rumors about what Apple (AAPL) - Get Report might say Monday at Apple's WWDC have been a big driver of Intel's gains.
Rumors suggest that Apple will reveal that Intel has won chip placement in versions of the iPhone 7 that will run on AT&T's (T) - Get Report network. Whether or not those rumors are true, Intel stock is in a sustained uptrend after the reclaiming all three key support benchmarks: its 20-, 50- and 100-day moving averages. And assuming Intel shares break resistance at $32.13, the stock is not stopping until it reaches $35 for an almost 10% gain.
Intel stock closed Friday at $32.04, up 0.31%. The shares, which are down 7% year to date, were only a handful of tech stocks to close in positive territory Friday on a brutal day for the entire market. And the stock is shaping up for a nice second-half recovery. Take a look at the chart below, courtesy of TradingView.
Intel shares have been on an incredible run, rising almost 20% since falling to their February low of around $27. As it stands, the stock is now only 2% away from its March high of $32.75, where it peaked just before Intel's first-quarter earnings report. From the chart above, you can see that the shares maintained support at around $29 (bottom blue line) as they consolidated before breaking higher -- an important bullish indicator.
While the market assumes Apple will become a solid growth driver for Intel's mobile revenue, Intel stock doesn't reflect such high assumptions. Even with its recent 9% gains over the past month, the stock is still priced at just 13 times this year's earnings, which is four points below the S&P 500 (SPX) .
In other words, not only are Intel's fundamentals strong, its technicals are shaping up even better, which is affirmed by the recent rise above the 20-day average at $31.09 (blue line). The chart shows an additional gain of around 10%, to $35, is in the cards as soon as Intel shares break resistance at around $32.10. Intel's earnings comes out next month. Expect those gains to be reached by then.
, which Cramer co-manages as a charitable trust, is long AAPL.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.










