July 13, 2010
Shares of Dell Inc (NASDAQ: DELL) have been declining since mid-April 2010. During that time frame they have had two failed rallies with each rally high being lower than the previous one. The first on May 13 and the second on June 17.
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. One Monday July 12 Dell touched that line, currently at about $13.05, and pulled back to close at $12.84.
Dell reached lows well below its December 2009 to February 2010 last week. Those lows held declines for four months. These lows are now broken.
Dell’s recent July 6 intra-day low, at $11.72 a share, is just a fraction below its July 14, 2009 correction low at $11.84. It closed just above that 2009 low. If Dell closes below $11.84 a share in coming days it will be at a new trading low since back in July 2009.
The odds are Dell shares will see post lower lows ahead.
Dell needs to close above $14.06 a share to have a chance of a continued advance.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does not currently hold a position in Dell Inc.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy does not currently hold a position in Dell Inc.