Long

Close to Key Resistance with Strong Momentum

Updated

is in a clear recovery phase after a substantial drop. Following the recent uptrend, it’s now approaching a significant resistance level near $135. This resistance level represents a prior high from June, a point where price previously struggled to hold.

Volume has increased slightly on this approach, suggesting that buyers are gaining confidence. However, if the stock fails to break above this level, it could face a pullback to test the support zone around $120.

Watch for a breakout above $135 with volume confirmation, as this could signal a continuation of the upward trend.

Note

Challenging moments are ahead for NYSE:DELL . It recently broke out with strong volume past its first resistance level and attempted to close the gap from May but unfortunately fell short. The next trading session will be decisive. Currently, the setup resembles a break-and-retest. If this holds, we could see a breakout beyond 138, which would be a positive step toward closing the gap from May.

However, if the scenario fails, the price may test its 21 EMA, leading to a potential -4.6% drop, or even reach its key support, risking a -10% drawdown.

Trade closed: stop reached

David_SpotTheTrend

David | SpotTheTrend
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