Dell (DELL): Analyzing Recent Trends and Future Expectations

17 Jun

Dell Technologies has experienced a remarkable rise of approximately 440% within a span of about one and a half years. However, this impressive ascent has been marked by a bearish divergence at the current top. The RSI has been forming lower tops while the price chart has been forming higher tops, indicating weakening momentum.

Current Situation:
Trend Channel: Dell shot above the trend channel, but quickly corrected downwards with a significant gap down, losing around 12% in a single day.
Support Level: The price found support within the trend channel, likely marking Wave A.

Expectations:
Wave B and C: We anticipate the formation of Wave B followed by Wave C, potentially moving into the open gap area. Although part of the gap between $94.44 and $104 has already been tagged, there is still some remaining that could be fully closed.
Critical Levels: It is crucial for the $80 level to hold. A break below this level could lead to further declines towards the $68 or even $60 range.

Key Points to Monitor:
Bearish Divergence: The bearish divergence on the RSI suggests potential further downside.
Gap Fill: Watch for a potential move to fill the remaining gap.
Support at $80: Maintaining support at $80 is critical to prevent deeper declines.