February 14 Chart of the Day - Dell Technologies
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Dell Technologies Inc. (DELL) is in advanced stages of securing a deal worth more than $5 billion to provide Elon Musk’s xAI with servers optimized for artificial intelligence work.
As a result their share price was trading up roughly 5% earlier today.
Many are left wondering…
Is price driven by the news or technical analysis?
While we acknowledge the potential impact of news events, today we’ll analyze their chart through the lens of price action technical analysis.
We have featured over 425+ Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $179.70 all time high (ATH) last summer price fell swiftly down under $90 in a short 3 months but has since rallied in an attempt to continue its long term uptrend.
This type of volatile up/down price action can be really tough on the buy and hold investors but at the same time can be a traders haven!
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the ensuring volatile price cycles.
Trading around $113.50 earlier today price may wander around this level for quite some time before deciding its next move.
We can see a converging downtrend and uptrend indicating a potential upcoming decision...
We also identified a change control zone roughly between $105 to $114 - long gray shaded rectangle.
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash through the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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