Intel Still Has Room to Run
10/24/2011 12:05 pm EST
Standout earnings and guidance from Intel (INTC) seemingly sets the stage for a test of late-2007 resistance, which resides at a rather lofty level that will be difficult for the leading chipmaker to exceed.
Shares of Intel Corp (INTC) rallied after the company announced a profit of profit of 69 cents a share on revenue of $14.23 billion, beating Wall Street expectations of 61 cents a share on sales of $13.9 billion. The company also said it expects revenue of $14.7 billion, plus or minus $500 million in the current quarter, a stronger-than-expected forecast.
Intel Corp is a semiconductor chip maker, which develops advanced integrated digital technology products, mainly integrated circuits, for industries such as computing and communications. It is a bellwether in the semiconductor sector.
Share prices surpassed their May 2011 highs as well as April 2010 rally highs, and at the time this article was written, were trading at $24.24, up 3.6% from the previous close.
This sets the stage for a test of the December 2007 highs near $28.00 a share. At this point, resistance will again be tough to surpass.
Support stands at $23.00 per share.
By Frank Kollar of FibTimer.com