Will DELL Continue To Rally?

Dell has one of the strongest performers in the S&P 500 over the past two days. This is following a very negative reaction from investors after their last quarterly earnings release. DELL had fallen over 28% from all-time highs just two days following their last earnings call. Is it time to buy the dip?

The long-term picture shows an expanding wedge pattern with strong bullish momentum. DELL has been in a strong rally for several months. Things look very bullish for DELL on the longer timeframes.

On the smaller timeframes, things look slightly worrysome. Dell Technologie's recent earnings release caused a major selloff that lasted a couple of weeks. The big earnings selloff coincided with a price rejection at the upper resistance level of this expanding wedge.

Over the past four months, DELL has been traveling within an almost perfect price channel. Currently, the price action is showing a potential rebound off of the support level of this price channel. There is a lot of volume associated with the rebound. So the rebound seems legitimate, so far.

There is always the possability that this 2-day uptick is simply some of the short positions unwinding before more downside ensues. Personally, I think this is less likely because this scenario would go against the current bullish trend.

If you follow simple horizontal supports like many technical traders do, then the recent consolidation near previous highs might look like an accumulation before the rebound. Previous highs are good areas to watch for support during a strong rally.

Many traders follow moving averages like the popular 50-day moving average. It appears like the 50-day average is acting as support. The major earnings selloff was not strong enough to breach the 50-day MA.

As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.

Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.