Intel is rangebound with resistance at 10670; the SK Hynix deal provides near-term support but potential margin pressure from increased supply creates a neutral-to-cautious outlook.

Uh, we also heard overnight that Intel is likely doing a deal with SKH Heinix to rent out one of their facilities to build chips here in the US. So, Intel is up on that news.

Again, why Intel? Why not one of these other ones? I'm just going to throw this out there that I have a small inkling that it could be to garner favor with the US since the US owns a percentage of Intel.

So, listen, good for Intel. Again, whether you like government involvement in publicly traded companies or not, at least Intel's getting the business. But again, you'd have to ask yourself, would there have been another American company that they would have gone to if the US did not have ownership there?

All right. Now, again, this is key because SKHix is looking to obviously build more chips. So in the near term, while this is helping Intel and helping maybe the chip sector rally today, you have to wonder more chips being made could ultimately drive margins down. So just keep that in mind.

Flipping back to the charts again, Intel Intel's just been really chopping sideways for a while. Little bit of a gap up today on this news, but really nothing of interest. Short-term, there's a very clear resistance on Intel at 10670.

And then you have your bottom level really right here. I would say there's a good trend line that's ascending through these lows going right from here. So again, rangebound trading on Intel.

Which way does it break out? As a technician, I'll be watching that very, very closely.