Stock Of The Day: Where Will The Intel Rally End?

Shares of Intel Corporation (NASDAQ: INTC) are trading sideways Thursday after the company announced that it was seeking an investment from Apple Inc. (NASDAQ: AAPL).If the shares continue to move ahead, there is a good chance the rally stalls or reverses if it reaches the $36 level. Hence, Intel is our Stock of the Day.As you can see on the chart below, the $26 level was resistance for Intel.The stock first had resistance there in November 2024. After selling off, it rallied back to this level in February. Once again, the shares encountered resistance.The same thing happened in March and then once more in August.Stocks frequently find resistance at prices that had been resistance before. This is a common occurrence, and it is an important principle for traders to understand.Read Also: CarMax Stock Hits 52-Week Low After Q2 Earnings – Here’s WhyIt happens because of regretful buyers.These are people who purchased shares while the stock was at the resistance that came to regret doing so when the price dropped after. Some of them decided they had made a mistake. They also decided to sell their positions.But they would only do so if they could exit the position without losing any money.As a result, when the shares finally returned to their buy price, they placed sell orders. There were so many of these orders that it created resistance at the same price that had been resistance previously.The $36 level was also a resistance level for Intel. It peaked there in July 2024. After this, it reversed and traded lower.Now the stock is in a strong uptrend.If it reaches this level again, there is a good chance it will find resistance there. Disappointed and remorseful buyers will be placing sell orders. If there are enough of them, it will create resistance at this important level once again.Sometimes, traders have difficulty deciding when to sell their shares. To do so when they reach a former resistance level would be a logical decision. Tim Cook’s Visit To Japan: From Meetings With Fumio Kishida And The Digital Minister To Hugging Pikachu — What’s Apple CEO Doing In Tokyo? Image: Shutterstock