August 25, 2010
Shares of Dell Inc (NASDAQ: DELL) have been in a steep decline since reaching 2010 highs back in April. From a high at $17.52 a share, shares have reached $11.59 as of the close on Tuesday, August 24, a 34% loss.
The $11.33 level is the 61.8% retracement support level for the entire February 2009 to April 2010 advance. If it is broken to the downside, share prices have no further support until they reach $7.99, the February 23, 2009 closing lows.
This would be an additional 31% loss in share value.
We would not take a position in shares of Dell Inc unless the downtrend is reversed. That would take a reversal and close above $14.00 a share, an unlikely event for the near term.
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.