Dell May Be StumblingDell Technologies has been staggering since the summer, and now some traders may worry about prices trending lower.
The first pattern on today’s chart is the bearish gap on November 27 after guidance came up short. The computer maker held roughly $125 for several sessions, fell and then retested that zone last week before stalling. The resulting lower high may suggest new resistance has been established.
Second, the weakness occurred at the 200-simple moving average (SMA). DELL had tried to hold that line since August. Is it now breaking?
Next, the 50-day SMA is nearing a potential “death cross” below the 200-day SMA. The 8-day exponential moving average (EMA) is additionally below the 21-day EMA. Those patterns are potentially consistent with long- and short-term weakening.
Fourth, stochastics are dipping from an overbought condition.
Finally, the higher lows since December 20 could be viewed as a bearish flag that’s now resolving to the downside.
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