Wednesday, June 13, 2007

Stock Chart: DELL, Comeback Story, June 13, 2007

Dell (DELL) appears to be coming back. The stock has recently cleared a 2 year downtrend. The stock is currently above both its 50 and 200 day moving average, and recently, the 50 day moving average crossed above the 200 day moving average, a bullish sign.

It is approaching resistance at the $27.89 level, and most likely stronger resistance around the $30 level (you can see greater congestion and selling volume there).

If the stock can form a nice handle on low volume, this may setup a nice base off of a bullish cup and handle formation (December 2006 to Present), and the stock could breakout on good volume on its way up. This is the optimistic view. Of course, the stock could behave very differently at resistance levels, and the stock could fail and go beneath the 50 day moving average.

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