Hi Michael Spahr; The DELL chart looks like a trading buy to me, right now. I say "trading" because I think that over the long term, DELL is going to have some big problems, as I have posted to this thread already.
On the 1-year chart, the stock looks like it is on the bottom of its long-term up channel. This is always a great time to buy a stock, provided it stays in that long-term up channel. The trader would have to take a quick, relatively painless, loss if the stock dropped through the bottom of that channel. Say a purchase at $83, and a stop loss at $70 to $75, with the intention of selling at a profit, upon reaching the upper end of the channel, possibly at $150 or more.
On the 5-day intra-day chart, it looks to me like classic market action at a short term bottom on slight bad news. My guess is that it is a pretty good time to buy the stock with the intention of holding 2 or 3 days, the current price ($83) forms a good base, so one could sell for a small loss if this were broken, say $81. The profit objective would be as high as $95 for someone willing to hold for a couple weeks.
I think half the secret to putting together winning short term trades is entering at a price which is close to the natural loss exit point. That way, if the trade goes sour, it doesn't cost you as much...
Overall, I would guess a move to new highs before 2 months are out. The doom and gloom is way exaggerated, for the short term, and the stock market mania continues.
-- Carl |
