Hi folks, great new thread!
I'm don't have a TA program, haven't read any TA books, and am not a daytrader. Am I on the wrong thread? Maybe, but I'm going to tell you guys what I see happening anyway. I'm what I call a position trader, I try to use fundamental and TA on only a select list of stocks to get in in front of a wave of momentum $$ and ride it for as long as it lasts. We all know the fundamentals behind DELL and this is not the place to discuss them so I'll just point out that the earnings report will be released on Thur. after the close as far as I know.
Now for a little TA (which is all the TA I know). Dell has been in a trading range since July, it is at the upper edge of its range. It successfully completed a W bottom off the lower end of the range and is now in the "handle" of a "cup and handle" formation. These three observations are very bullish signs to me. Then I think OK what this stock needs is some news to break it out of the c and h formation and out of the trading range to a new high. So what news might be forthcoming? How about another blowout earnings report in 4 more trading days? If I'm right Dell will make a new high this week, this will be the technical buy signal to all the momentum players that are currently off chasing small caps, to say "hey wait a minute, Dell is taking off on us, we gotta get back in!" Any shorts left out there will cover starting another leg up to finish off '98.
Another way to look at this situation is to note all the other tech bellwhethers that are making or fast approaching new highs. Will Dell be left behind? I don't think so...
Anyway we should know if I'm right by Fri.
Regards,Lee
PS- If the market tanks due to ____(fill in the blank) disregard all of the above if you haven't already! :^) |
