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In the daily DELL bar chart, below, we can see that prices rebounded from January to May, but they made the bulk of those gains at the end of August. Prices are lower than the average decreasing line of 50 days and the decreasing line of 200 days.
The volume of transactions has increased in the last three months compared to April and May, at the top of the list. The falling volume increase confirms that traders believe in the decline. Daily On-Balance-Volume (OBV) declined in early May and is another sign that DELL vendors have been more aggressive.
The MACD (Moving Average Convergence Convergence Divergence) oscillator is pointing downwards and is not narrowing towards a coverage signal in shorts.
In the weekly DELL histogram, we can see below that prices have broken a three-year uptrend and that the 40-week moving average line slope is negative. The weekly OBV line has weakened over the last four months, resulting in considerable sale and distribution.
The weekly MACD oscillator is bearish.
In DELL's first daily chart, Point and Figure, we can see a potential target price cut of $ 42.
In DELL's second weekly chart, entitled Point and Figure, we see below a potential price decline target of about $ 30, which would imply a review of price zones starting in 2017.
Substantive strategy: I do not know if DELL will reach or miss its numbers, but the charts and indicators suggest further declines in the coming months. Avoid the long side of DELL. Our goals are $ 42 and maybe $ 30.
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