Dell Looks Swell
In recent columns I have been pointing out various stocks that bottomed in
December and for one reason or another have remained in general uptrends since
then. With Apple Computer posting a stellar earnings report on Wednesday after
the bell, I had my attention drawn to the computer makers, and I noticed that
Dell has been making some solid progress of late.
Dell pulled back from its late January highs, but it managed to avoid the
tech meltdown of February and March. After holding near its 50-day moving
average and building a two month base, Dell pulled back in early April, but
managed to bounce back and remain in its four month uptrend.
On Tuesday, Dell bounced off its trendline and 50-day moving
average and then on Wednesday rose to a 5-month high on heavy volume. While Dell
couldn’t hold its 200-day on Wednesday, it did capture and hold above it
Thursday where volume was again strong. Dell closed up 2.02 to 30.49 and now
faces the challenge of remaining above its 200-day moving average. I will be
watching to see if volume can remain strong as Dell will likely face some
resistance at about 33, its November highs.
Until Friday,