Yesterday, Intel (INTC) shares jumped by 11% in a single session, climbing above $54.00 — a level last seen in early 2022.

The sharp rally reflects several factors:
→ the psychological impact of breaking above the $50 threshold;
→ a short squeeze effect;
→ prevailing bullish sentiment ahead of Intel’s earnings report, due to be released after the close of the main trading session today.

Optimism is being driven by:

→ Analyst commentary (notably from HSBC), suggesting that the evolution of AI from simple chatbots to autonomous agents requires massive CPU capacity, not just GPUs. This implies a potential shift in demand away from Nvidia’s products towards Intel’s server chips.

→ Successful implementation of the 18A process technology and strong prospects for Panther Lake processors. Market participants may be expecting Intel to unveil ambitious plans for 2026, signalling the company’s emergence from its recent difficulties.

Technical Analysis of INTC Shares

On the morning of 8 January, when analysing the INTC chart, we:

→ confirmed that the broad long-term channel remains valid;
→ noted that the line dividing the upper half of the channel into two quarters was showing signs of resistance, based on volume analysis;
→ considered the likelihood of a pullback.

As the chart illustrates:

→ a pullback did occur, but it was limited in scope and accompanied by below-average volumes, indicating weak selling pressure;

→ as early as 9 January, bulls viewed the stock as attractive near the trendline (shown in grey) and launched a renewed advance. This move proved successful, with the formation of a wide bullish candle closing at the highs on rising volume. Declining volume during pullbacks and increasing volume on advances is a classic hallmark of a bullish market.

As a result, INTC shares have risen by more than 130% over the past six months. However, it cannot be ruled out that the earnings release may mark a culmination of the uptrend near the upper boundary of the long-term channel.

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