Naked Chart Trading: DELL 4 Jun 2024

Sales increased 6.3% to US$22.2bil in the period ended May 3, the Round Rock, Texas-based company said in a statement.

Analysts, on average, estimated US$21.6bil. Profit, excluding some items, was US$1.27 a share, compared with the average projection of US$1.23.

Revenue from Dell's powerful servers equipped to handle AI tasks more than doubled from the previous quarter to US$1.7bil, chief operating officer Jeff Clarke said in the statement. But excitement around AI demand for Dell's machines created high expectations for last Thursday's results.

As Dell's share prices folded more than 10 times since pandemic, it is acceptable for the strong bull trend to take a break in short term. So i study its chart to identify the potential technical correction end, and if the bull trend still intact.

Long term wise the trend remains bullish, with short term bearish reversal pattern confirmed, but i do not expect the technical correction will go all the way to pandemic level, so the Fibo analysis i drawed is based on Oct 2022 low.

Support levels located at 61.8% USD123, 50% USD104, 38.2% USD88 and 23.6% USD66. Immediate support at USD128.5, close below this level to trigger more downside. Immediate resistance levels are USD141.50, USD150.50 and USD174.

Overall Dell's long term fundamental and technical remain healthy, plus AI catalyst, this stock is still a good medium to long term play for me, especially the stock is undergoing technical correction at where I can buy at cheaper price now, I will pay attention to any potential entry on bullish reversal to signal an end of technical correction.

Disclaimer
This content is for reference only and does not constitute any investment advice, and past performance is not indicative of future performance. Returns will vary, and all investments carry risks, including loss of principal. Please make your own investment decisions.