- October 21, 2022
- Posted by: Tradingshot Articles
- Category: Stocks
Dell Technologies (DELL) is testing the top (Lower Highs trend-line) of the short-term Channel Down that started after the September 12 High. The 1D MA50 (blue trend-line) is right above it, all within the wider pattern of the long-term Channel Down since the March 29 rejection on the 1D MA50.
However, while the price was on the Channel Down’s Lower Lows, the 1D RSI has been on Higher Lows since September 27, waving a Bullish Divergence. As we just bounced near the bottom (Lower Lows trend-line) of the long-term Channel Down, it is highly likely that we will extend the rebound and hit at least the All Time High Lower Highs trend-line (dashed). A good time to take profit and re-evaluate would also be when the RSI hits its 4 month Resistance Zone.