Dell Might Have Broken Another Bearish FlagDell Technologies has been crumbling since November, and some traders may see further downside risk.
The first pattern on today’s chart is the series of higher lows between March 10 and 25. The computer maker slipped below the rising trendline this week, which may be viewed as a potential bear-flag breakdown. (Similar moves recently resolved to the downside.)
Next, stochastics are dipping from an overbought condition. Similar turns, like on January 7 and February 21, marked tops. (See the yellow arrows in lower study.)
Third, prices are stalling at the 21-day exponential moving average (EMA). The 8-day EMA is also below the 21-day EMA. That’s potentially consistent with a short-term downtrend.
Fourth, the 50-day simple moving average (SMA) had a “death cross” below the 200-day SMA in January. That’s potentially consistent with a long-term downtrend.
Finally, DELL recently peaked near the September low of $101.41. (See white arrows on the main chart.) Has old support become new resistance?
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