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Intel Corp. (INTC) Bounces Off Key Support

Last time we looked at shares of Intel Corp. (INTC) we noted that there was a key support in the 32.75-33.40 area, right around 33. Price has since fallen to this area and stalled. Then, during the 7/5 session, we saw a strong rebound confirming our anticipation of support.

INTC Daily Chart

(click to enlarge)

- Here's the thing, INTC has been trading in a sideways consolidation mode since 2015, so we should probably NOT expect a strong upside from this support. 
- In fact, we have been seeing lower highs, suggesting some bearish bias. 
- I think the conservative upside will be around 35. If the market is in a bearish correction mode, it should find resistance around 35. So if it does, I would not rely on the support around 33 anymore. 
- Above 35, the 100- and 200-day simple moving average around 36 represent another possible target/resistance. 
- I think we should limit the most aggressive upside to the June high around 36.50. 
- If price can push through 37 and the falling resistance seen in the daily chart, then we are simply seeing a more flat consolidation instead of a bearish correction. At that point, we still should limit the upside to 38.35, the 2016 high.