After yesterday’s market close, shares of the well-known American semiconductor manufacturer rose by 1.47%. Today, the share moved down again before the stock market opened at -0.86%.
After the correction that interrupted the last recovery movement in October and November 2022, the price had fallen back to a low of around $25.50 after an interim high of $31.30. Since then, the price has recovered 18%, completing a W formation.
It has been known for some months that Intel wants to expand its production to Germany and build two semiconductor plants in Magdeburg. Recently, however, it became known that the construction of these plants could be delayed because the billions of euros in financial support required by the EU presuppose a change in the legal framework. This process could take several more months.
Intel relies on government support for this, but remains committed to the construction project. However, the increased construction and energy costs since planning began are a particular problem.
The price has secured a relevant support in the $27.35 area, while the next resistance can be seen in the $31.00 area. If the price turns bullish after the market opens, a rise to resistance or even beyond towards $32.00 could occur. Otherwise, the price could fall back to the support at $27.53 and test it again. If this is breached, we could see a further descent towards $26.00.