Dell Technologies flew to new highs between late 2020 and early 2021. Now after a long period of consolidation, the PC maker may be squeezing toward a breakout.
The main feature on this chart is the high basing pattern between April and September. Notice how DELL held $94 in May, tested $90.50 in July and held $94 again last month. The result is an inverse head-and-shoulders formation.
Next, consider the price action around some news events. The bears initially stepped in on August 27 when rival HP (HPQ) issued a weak outlook. But the bulls regained control on September 23 when management reaffirmed guidance and announced a $5 billion share buyback.
DELL hit a new high over $105 that day and was near $108 by last week. Then the shares paused and pulled back. They’re now attempting to hold the previous peak from mid-June. Will old resistance become new support?
The current dip has also brought prices back to the 21-day exponential moving average (EMA).
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