Shares of Dell Inc (NASDAQ: DELL) Headed
Lower Says Market Timer Frank Kollar
February 23, 2010 (FinancialWire) (By Frank Kollar)
Shares of Dell Inc (NASDAQ: DELL) have been declining
since September 2009. During that time frame they have
had four rallies with each rally high being lower than
the previous one.
This sets up a declining trend resistance line (drawn
a line through the highs) and unless Dell can break above
it, the odds favor lower lows ahead.
Dell has also made two important lows over the past three
months. A break of either of these lows would result in
considerably lower prices.
On December 9, shares of Dell reached a low of $12.74
in intra-day trading. On January 29, shares of Dell again
declined to this level, reaching $12.75 intra-day.
This makes a very definitive support level and one that
has not been broken since back in July, 2009.
Should Dell close below $12.74 in coming weeks, we would
expect substantial selling to take shares much lower, to
at least $12.44 and likely to the $11.35 level.
Dell needs to close above $14.50 a share to renew its
prior uptrend, something that appears unlikely in the current
economic environment.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and
Nasdaq index fund traders, as well as bond, gold, small
cap, sector, ETF and stock trading strategies.
Kollar’s research has shown
that the financial markets are in tradable trends approximately
80 percent of the time. FibTimer strategies define trends
and trade them in both advancing and declining markets.
Caring nothing about what newscasters say or what the
latest economic indicator predicts, trends are where
the profits are, and that is where FibTimer is.
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