Chart of the day

Where do we stand fundamentally?

Pat Gelsinger has abruptly stepped down as CEO, reportedly under pressure from the board amid ongoing challenges. David Zinsner and Michelle Johnston Holthaus are serving as interim co-CEOs. The decision reflects Intel's attempts to stabilize after a 47% stock drop and $11 billion in operating losses this year.

The company has struggled to keep pace with competitors like NVIDIA in AI and advanced chip manufacturing. Layoffs of 15,000 employees and attempts to restructure, such as splitting its Foundry business, are part of Intel’s recovery strategy.

INTC has retested the broken downside resistance of 24.4. An extension downside from here can lead to a test of 10 level in the third downside wave which has formed a broadening wedge.

The target level in this third wave could be a 5-13 zone if we get a confirmed downside extension from here in the medium-term. INTC is well supported for the downside by 23 level and only a significant break above 30 can invalidate the downside extension.

_{Try a short trade entry with a stop loss above 27 to target 14 and lower. Trade it with a put option as well.}