Dell Technologies fell sharply in late May, and some traders may see further downside risk.

The first pattern on today’s chart is the selloff between mid-July and early August. DELL has been unable to climb past a 50 percent retracement of that move, which may suggest its direction is lower.

That level around $113-114 is also near the 200-day simple moving average and April’s monthly low. It was additionally a brief consolidation area in late July.

Those further points may boost the importance of a potential move below this zone.

Next, stochastics are retreating from an overbought condition.

Finally, the PC maker tried to stage a feeble rally after earnings last week but didn’t go far. The resulting failed breakout could also be viewed as a negative signal.

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