Dell Squeezes Toward New Highs
Dell Technologies flew to new highs between late 2020 and early 2021. Now after a long period of consolidation, the PC maker may be squeezing toward a breakout.
The main feature on this chart is the high basing pattern between April and September. Notice how DELL held $94 in May, tested $90.50 in July and held $94 again last month. The result is an inverse head-and-shoulders formation.
Next, consider the price action around some news events. The bears initially stepped in on August 27 when rival HP (HPQ) issued a weak outlook. But the bulls regained control on September 23 when management reaffirmed guidance and announced a $5 billion share buyback.
DELL hit a new high over $105 that day and was near $108 by last week. Then the shares paused and pulled back. They’re now attempting to hold the previous peak from mid-June. Will old resistance become new support?
The current dip has also brought prices back to the 21-day exponential moving average (EMA).
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The main feature on this chart is the high basing pattern between April and September. Notice how DELL held $94 in May, tested $90.50 in July and held $94 again last month. The result is an inverse head-and-shoulders formation.
Next, consider the price action around some news events. The bears initially stepped in on August 27 when rival HP (HPQ) issued a weak outlook. But the bulls regained control on September 23 when management reaffirmed guidance and announced a $5 billion share buyback.
DELL hit a new high over $105 that day and was near $108 by last week. Then the shares paused and pulled back. They’re now attempting to hold the previous peak from mid-June. Will old resistance become new support?
The current dip has also brought prices back to the 21-day exponential moving average (EMA).
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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