DELL bulls about to attempt a risky breakout
Dell Technologies Inc (DELL) has shown its popularity since the March lows by staging an impressive recovery outperforming the markets, rising just shy of 40%. Currently undervalued by approx 26.0%, DELL’s earnings are forecast to grow by 13.94% per year and has returned 4.6% in the last seven days alone.
From a technical standpoint, the rally of late has managed to recapture the May 2019 highs which marked the top for that year which preceded a multi-month decline, that bottomed out in March of this year. The triple resistance cluster it now faces at (3) will be an important zone to monitor in order to forecast the future share price of this company.
A clean break and close on the higher time frames above (3) would indicate further room to the upside, plus a failed rising wedge pattern adding confirmation to this bullish outlook. Alternatively, if resistance proves too stubborn, another buying opportunity should present itself at the wedge support line. Below that should be construed as a warning sign, and traders should perhaps sit on the fence until the next buy signal becomes clear.