Mind the Gap please
Updated
Jensen told us to get bullish on Dell, whilst Michael Dell has sold over 
2BN in shares. This is how whales dump their stock to retail, who become bag holders at the top. Sorry to disappoint you if you are a bull, but why would the man behind the company sell off such a significant portion of his holdings? He clearly knew it ran up to hard and too fast. Cramer claimed it was a screaming buy despite all this, that explains why he has become a meme in the trading community.
Why did Mr Dell sell? He clearly knew the business was overvalued. From a chart perspective I’d count the top as the 5th wave. Now we are in a corrective phase according to Elliot Wave theory. Where does the pain end?
So there’s a large gap fill around $100, where we might get a small bounce. But let me assure you that it won’t be the biggest bounce as it will be around the 0.786 Fibonacci retracement and that indicates weakness. I’d expect it to hang around there for a little while before making its next move. If it can hold the 0.618 then we can make a case for a bullish reversal, let’s wait to see how it pans out.
Not financial advice, just my interpretation of the charts.
2BN in shares. This is how whales dump their stock to retail, who become bag holders at the top. Sorry to disappoint you if you are a bull, but why would the man behind the company sell off such a significant portion of his holdings? He clearly knew it ran up to hard and too fast. Cramer claimed it was a screaming buy despite all this, that explains why he has become a meme in the trading community. Why did Mr Dell sell? He clearly knew the business was overvalued. From a chart perspective I’d count the top as the 5th wave. Now we are in a corrective phase according to Elliot Wave theory. Where does the pain end?
So there’s a large gap fill around $100, where we might get a small bounce. But let me assure you that it won’t be the biggest bounce as it will be around the 0.786 Fibonacci retracement and that indicates weakness. I’d expect it to hang around there for a little while before making its next move. If it can hold the 0.618 then we can make a case for a bullish reversal, let’s wait to see how it pans out.
Not financial advice, just my interpretation of the charts.
Trade closed: target reached
Short closed. Target reached. Looking to build long positions now
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