Dell Inc (NASDAQ: DELL) Breaks Support
Says Market Timer Frank Kollar
May 19, 2010 (FinancialWire) (By Frank Kollar)
Shares of Dell Inc (NASDAQ: DELL) had a strong rally from
early March to late April, gaining 27%, but after reaching
new 2010 highs on April 23, share prices have suffered
substantial declines, losing 14.3% in only three weeks.
During the mini-crash two weeks ago, Dell traded below
support, but quickly rebounded and because of the circumstances,
we did not see it as a violation of support.
But on Tuesday, May 18, Dell again broke below, and closed
below, its 50% retracement of the strong March to April
rally. This forecasts lower lows ahead.
Dell has one short-term support level left at $14.57,
the 61.8% retracement of the March to April rally. This
level was also broken intra-day in the mini-crash. If Dell
can hold and rally at or above this level we could see
gains or at least a period of consolidation, but if Dell
breaks below the $14.57 level, it could end up testing
the March lows in coming months.
Those March lows are near the $13.00 level.
The Fibtimer.com (http://www.fibtimer.com)
Stock Timing Strategy holds a position in Dell Inc.
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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