Lisa,
Im starting to trade stocks now, and you may like to know that DELL gave an ominous technical sign.
I wont state all the technical negatives but heres an obvious one.
In JULY,AUG,and SEPT DELL had a great looking chart setting highers, but there was one negative, which was not conclusive at the time, and that was that at the end of AUG it actually set the first LOWER LOW. In SEPT it set another HIGHER HIGH, so at that time it could have negated the LOWER LOW in AUG. However, on OCT 8 DELL set a major LOWER LOW and the bounce was only about 61% of its loss off of the intraday highs around 69. Im using intraday figures.
If DELL does not break 69 this up cycle, or soon then that will be the first time the DELL has created a full cycle of a LOWER LOW and LOWER HIGH.
Im not saying that it will break 41 to the downside, but DELL is definitely weakening on a technical basis, and believe that it can be played to for short-term shorts and longs. The liklihood is that 69 is the TOP for DELL, at least for a while.
Right now it appears to be forming a triangle with very steep slopes.
Just thought you would like to know. By the way I played a 1 day PUT on it on TUE when it dropped 6 points intraday. Got out at the end of the day since it was about a 60% gain.
Seeya
Seeya |
