Intel (INTC) surged Tuesday following reports that the chipmaker is preparing to raise prices on its PC CPUs by roughly 10% in October, another step in the company’s effort to improve margins as demand remains strong and component costs rise. The bullish news was reinforced by Northland Securities upgrading Intel from Market Perform to Outperform and setting a $120 price target, citing material progress in the company’s turnaround, tight server-CPU supply and improving prospects for its foundry business. Intel’s strength was particularly notable on a day when the broader market traded lower.

The news triggered a powerful technical move, with INTC jumping about 9% and trading above $104 on exceptionally heavy volume. The stock broke decisively above its short- and intermediate-term moving averages, including the 8-, 21- and 55-day EMAs, after spending several weeks consolidating in the $90s. Momentum indicators strengthened with the move: the PPO turned bullish with a positive histogram, while +DI moved sharply above -DI. The breakout puts the $108 area in focus as the first nearby resistance level; a sustained move through that area could open the door toward the $115-$120 region. Today’s combination of strong volume, improving momentum and a clear news catalyst makes INTC a stock worth watching for continued upside.

Wishing you the best,

Wendy

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