Intel
Shares of Intel (INTC) saw their largest daily percentage increase in over two months on Tuesday, rising by 5.2% after the chip manufacturing company announced it had secured a $3.2 billion grant from the Israeli government to expand its $25 billion chip manufacturing plant in southern Israel. Under the financial support, the company will purchase $16.6 billion worth of goods and services from Israeli suppliers over the next decade and will create approximately 2,000 jobs at the Kiryat Gat manufacturing site. Construction has already begun and the facilities are expected to be opened by 2028. Over the past five decades, the company has invested more than $50 billion in its operations in Israel, including $10 billion in the Kiryat Gat plant.
Intel’s stock price has steadily risen throughout 2023, with gains accelerating in recent months amid the year-end trend of buying big tech stocks. Investors should monitor how the price reacts to two key areas on the chart. First, if the stock retreats, watch the $45 level where it may find support from a horizontal line connecting several price points over the past 22 months. Second, if the price continues to rise, monitor a critical resistance line at $52. Movements outside of these important support and resistance levels will provide indications of Intel’s future price direction.
NIO
Shares of Chinese electric vehicle company NIO (NIO) rose by 10.8% on Tuesday after the company unveiled its new luxury four-door ET9 car during its annual Nio Day event over the weekend. The vehicle, which marks the company’s first entry into the luxury electric vehicle market, features self-driving capabilities, a 900-volt electric motor for fast charging, and smooth suspension technology. NIO’s founder and CEO William Li stated that he expects deliveries of the ET9 to begin in the first quarter of 2025 at a price of 800,000 Chinese yuan, which is approximately $112,000. This high-priced vehicle, marketed by NIO as a “Smart Executive Flagship,” helps the company target wealthier customers with the potential for margin expansion. NIO has not reported profits since its inception in 2014.
After testing key support around $7 throughout November and December, NIO’s stock price has risen in recent weeks. Tuesday’s price action saw a breakout of a flag-like pattern and a close above the closely watched 200-day moving average, indicating upward momentum. If the price continues to rise, it’s important to monitor the recent highs from December 2022 and January 2023, as these may serve as future resistance areas on the chart.
XRT Retail ETF
The SPDR S&P Retail ETF (XRT) gained 0.9% on Tuesday after a report from Mastercard Incorporated (MA) indicated an increase in spending during the holiday season. Data from the financial company showed that retail sales during the holiday season rose by 3.1% from November 1 to December 24 compared to the previous year, thanks to late holiday deals and seasonal promotions. Although this is lower than the 3.7% figure that Mastercard had predicted in September, it reaffirms that consumers are still spending, helping to alleviate fears of an economic slowdown. Mastercard’s chief economist Michelle Meyer told The New York Times: “What we are seeing this holiday season is very consistent with how we think about the economy, which is that it’s still a very expanding economy.”
The retail ETF price has been trading within an approximate range for 18 months, leading to clear support and resistance areas on the chart. The ETF is currently sitting near the upper boundary of the range at $75.50. Investors should monitor how the price reacts to the upper end of the pattern. A convincing breakout with volume support could signal further upside potential, while a rejection may lead to a return to long-term support around $58.
Source: https://www.investopedia.com/3-charts-for-investors-to-watch-wednesday-intel-nio-xrt-etf-8420291
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