Intel (INTC) confirms a bullish island reversal

We have gotten questions on INTC.

INTC gapped up on huge volume today, with the stock breaking out from a bullish island reversal pattern dating back to mid 2024.

A bullish island pattern is a gap-based reversal pattern that suggests sellers are exhausted and buyers are taking control. This pattern is defined by 1) a downtrend, 2) a downside gap, 3) a period of sideways to lower trading, and 4) an upside gap. Higher volume usually accompanies the downside and upside gaps. The trapped sellers in the island are left holding positions at a disadvantage. The gap up signals strong buying pressure and often marks the end of the downtrend and the start of a new uptrend.

INTC's bullish island makes the case for continued upside into the 34.47 (50% retracement of the late 2023-early 2025 decline) to 38.44 (61.8% retracement) range with a pattern count at 36 and chart resistance at 37.16.

Key supports: 30.50 (38.2% retracement) and 30.16 (upper end of gap) with the breakout point at 27.55 and the lower end of the gap at 25.26.

Chart 1: Intel (INTC)