Bad news for Intel is good news for its competitors

While this news was unfortunate for Intel, it has proven a bit of a boost for competitors NVIDIA (NVDA) and Advanced Micro Devices (AMD). Technology analysts note that this news is bad for Intel, but it is not "devastating." Today's news opens the door for Intel's competitors, now who will walk through to claim some market share?

Technically, INTC is in the midst of a rather tough battle with overhead resistance from the $20.50 region. Since the end of August, the stock has attempted breaking through this resistance -- failing each time. The good news is that the shares are riding along support from their 10-week and 20-week moving averages. This support has been in place since the middle of the calendar year. Will the trendlines stand up to the resistance and help push INTC higher? Chances are good, especially since these trendlines acted as resistance in the past. Often times, we will see prior levels of resistance act as support, and more often than not, this support stands up to any tests.

The long-term picture isn't as good, as the shares are facing overhead resistance from their 50-month moving average. This trendline has capped the shares in the past, and has brought a seeming end to the equity's current rally. Can the stock break through the overhead resistance? Yes, but Monday's news won't help matters.