Shares of Dell Inc (DELL) had a bullish breakout by rising well above a declining trend resistance line and closing well above it on March 17.
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That declining trend line was created with four consecutively lower daily highs reached since reaching a closing rally high back on September 16, 2009 at $16.92. Drawing a line between these highs end extending it to the right side of the chart, you get a declining trend resistance line. The dates of these highs are: Sept 16, 2009; November 18, 2009; January 12, 2010; and February 18, 2010.
Since the breakout, DELL has risen almost 5%. DELL has further to go on the upside before reaching its next resistance level. This is the 61.2% retracement, at $15.45, of the September-to-December decline in prices. That is another 3% in likely gains.
If $15.45 is surpassed, DELL will probably run to at least $16.00 a share—the November rally high—and it could reach its prior rally highs or the $17.00 level in coming weeks or months.
By Frank Kollar of FibTimer.com
