My $DELL chart analysis for July 8, 2013
Here is my analysis on $DELL. In regards to the news, there is murkiness because of the buyout noise between Carl Icahn and Michael Dell. I don't like to speculate because of that. However, the chart is interesting.
On the daily chart we have a gap down on April 19th that has since been a ceiling of resistance (indication of a move setup). It has breached $13.50 a few times since April and significantly on June 18th, but has not closed above that with strength. On the 5th of July it plunged below $13 but closed above, created a long tail that is over 100% the length of the body (bullish indicator). Today it had a bullish day in which it closed above many of the consolidated moving averages (8ema,13ema,20sma,50sma). This is support for the previously mentioned bullish indicator.
Now I would like to mention the off chart technical indicators. All three of the daily ones that I am showing here (top to bottom: slow stochastic, MACD, ADX) indicate that $DELL has consolidated in oversold territory and is ready for a reversal. The next two weekly ones that I am showing here (top to bottom: slow stochastic, and MACD) also indicate that $DELL has consolidated in oversold territory and is ready for a reversal.
My hypothesis is this, if $DELL breaks above $13.50 tomorrow (Tuesday, this years hotest day to trade on average), I believe a safe first target will be $14.00, followed by the 52-week high around $14.50. Because of the buyout talk, I don't want to make a long term trade or investment in $DELL. 'Cloudy its future is.' (So Yoda would say.)
That's my opinion. What's yours? Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
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