Dell LongMassive bids printed after earnings, looking to attempt gap close as it gains momentum. Lets see if sellers want to step in the way of this one.
DELL trade ideas
Dell Bears May Look for More DownsideDell 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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Dell ShortSellers have hopped in on the daily and weekly time frames.
Pivot is 111.99
Close under this price at the end of the week will cause further downside unless buyers make a stand.
$DELL - Page Up or Page Down?The bull run that CAPITALCOM:DELL has experienced since March of last year came to an abrupt stop end of May this year, with an ATH. Since, the stock has been falling. It has formed a downward channel, although with price rising lately. If you look closely, you will see that the rise was only for about a week, and it has since consolidated. It is now approaching the roof of the channel, as well as an area of resistance from April. Recent price action can be argued to form a Flag formation, with trend continuation (down) as the most likely outcome. Yesterday, Aug 30, price gapped up on the open and formed a hammer candle. This is a bullish candle, and the gap makes it even more bullish. Also, volume was higher than recent average the last couple days, reinforcing the move, and MACD is on the rise. We can expect a bounce off the falling trend line, however I believe this will only be a pullback, before a move up and breach of resistance. Entry would be confirmation of resistance breach, in the form of a big green candle, or a few consecutive green candles, preferably with solid volume. Target would be $136, where we had a gap down back in mid July and price might be looking to fill the gap. This is also an area of resistance. Stop loss below recent swing low, $107.
Dell Stock Rises After Company Reports Strong EarningsKey Takeaways:
- Dell's Q2 earnings surpassed expectations on both top and bottom lines, driven by strong AI-optimized server sales.
- Server and networking revenue rose 80% to a record $7.7 billion, with AI server demand increasing 23% sequentially.
- Dell stock (NYSE: NYSE:DELL ) rose over 5% in Friday's premarket trading, highlighting technical momentum.
Fundamental Analysis:
Dell Technologies (NYSE: NYSE:DELL ) has solidified its position as a leading player in the AI server market, a rapidly expanding segment fueled by increasing investments from businesses and cloud providers in next-generation AI infrastructure. In its fiscal second-quarter earnings report, Dell posted revenues of $25.06 billion, exceeding analysts’ expectations of $24.53 billion. The company's adjusted EPS of $1.89 also outperformed forecasts, underscoring strong execution in the current market environment.
The standout performance came from Dell’s Infrastructure Solutions Group (ISG), which includes servers and networking equipment. ISG revenue jumped 38% year-over-year to $11.65 billion, driven by an 80% surge in server and networking revenue to $7.76 billion, marking a record high. This was propelled by significant demand for AI-optimized servers, primarily those integrating Nvidia and AMD chips.
AI Sales Fuel Growth:
Dell (NYSE: NYSE:DELL ) has emerged as a top vendor for AI-oriented servers, benefiting from the industry's ongoing shift towards AI-driven solutions. AI server sales soared to $3.1 billion in the quarter, up from $1.7 billion in the previous quarter, highlighting robust sequential growth. According to Chief Operating Officer Jeff Clarke, Dell is actively competing and winning large-scale AI deals, further expanding its market share in this high-growth segment.
The AI-driven demand surge is not only boosting Dell’s top line but also creating a backlog of $3.8 billion in AI server orders and a multibillion-dollar pipeline of potential deals yet to be finalized. Despite a decline in Dell’s storage business, down 5% to $4 billion, and a 4% drop in its Client Solutions Group revenue, the explosive growth in AI servers has positioned Dell as a key player in the tech industry’s AI boom.
Guidance and Market Sentiment:
Dell’s slight upward revision of its full-year revenue guidance to $95.5 billion - $98.5 billion, up from the previous $93.5 billion - $97.5 billion, reflects management's confidence in sustaining growth momentum, particularly in its ISG division. Despite a 34% decline in Dell's stock since its last report, shares have rebounded strongly, gaining 48% year-to-date, supported by its robust earnings performance and growing AI server market share.
Technical Analysis:
On the technical front, Dell stock (NYSE: NYSE:DELL ) is showing promising signals of a bullish reversal. The stock surged over 5% in premarket trading on Friday, positioning the RSI (Relative Strength Index) at approximately 53, up from 49 on Thursday. This upward RSI movement suggests growing buying momentum, with a potential target zone of 60-65, which would confirm a bullish reversal.
The daily price chart displays a fading bullish flag pattern, an indicator of potential upward price movement if momentum continues. A breakout above the flag pattern, supported by sustained buying pressure, could propel the stock towards higher price targets, making Dell a strong candidate for further gains in the short to medium term.
Bullish Catalysts:
- The 80% year-over-year surge in server and networking revenue demonstrates Dell's effective capitalizing on AI-driven demand, particularly for servers optimized for advanced AI workloads.
- Dell's strategic focus on AI servers is generating substantial backlog and deal pipelines, positioning the company for sustained revenue growth.
- The company’s ongoing share repurchase and dividend strategy, with $1 billion spent in the quarter, enhances shareholder value and supports the stock’s upside potential.
Conclusion:
Dell's strong earnings report highlights its strategic pivot towards AI infrastructure, driving substantial gains in its ISG division and positioning the company as a leader in the AI server market. The fundamental strength, combined with positive technical indicators, sets the stage for continued upward momentum in Dell stock. Investors should watch for further confirmation of a bullish reversal, as rising RSI and potential breakouts in price patterns could signal additional upside for Dell shares in the near term.
$DELL - a potential breakoutNYSE:DELL has the potential to break out of the wedge and see further upside. 🚀
Targets:
$122
$133
$144
Support:
$108–$104
As always, I share my opinions and trades. I’m not suggesting anyone follow my trades. You do you.
DELL BEATS EARNINGS & REVENUDell beats earnings expectations(by 10.84%) & revenue expectations(by 3.68%).
I am bullish.
Please refer to chart for data points.
DELL sitting at a historic level. Next downside target indicatedDELL sitting just above historic 200 SMA. Further downside possible to fill pre April earnings gap. Next downside target indicated. This analysis is for informational purposes only.
Dell Potential Downtrend Line Breakout At $109.22 29.08.2024Apply risk management
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Disclaimer
8/28/24 - $dell - Spec buy at $110 into print8/28/24 :: VROCKSTAR :: NYSE:DELL
Spec buy at $110 into print
- about 100 bn dollar company doing 6-7 bn in FCF (that's real FCF) so great yield here for a biz that's a full-suite enterprise tooler
- in light of the NASDAQ:SMCI accusations, while NYSE:DELL is quite a bit broader of a biz model, they would stand to benefit from a tainted player (I'd *like* to buy NASDAQ:SMCI , but am out of the stock, thankfully and don't think in this environment I'd neck out given I agree the CF dynamics are a little hard to understand and this is the core of the accusation).
- back to $DELL. so great FCF yield. add the debt to the stock price (so gross it up by 25%) and you go from $110 to about $140. on $9 of EPS power that's ~15x. And the CAGR of these EPS results is about 15%.
- so while it might not be a table pounding buy here, it offers a nice tangential way of playing NASDAQ:NVDA EPS (beta) while protecting a bit on the downside. This is the main reason I own NYSE:TSM (diff beta but similar logic).
LMK what you think. given results tmr, I might play a small 25 bps and keep it on the short list in case we get a dumpity doo dah in the next weeks back toward the 80s (which i'd not "expect" but where you've got great support). I think the stock in the low $100's is already pretty good value. $110 is probably a 7/10 entry. closer to $100 is a 8-9/10 entry and anything toward 90s and 80s again would be a 10/10 entry and probably worth a 2%+ set and forget position.
thoughts?
V
DELL Technologies Options Ahead of EarningsAnalyzing the options chain and the chart patterns of DELL Technologies prior to the earnings report this week,
I would consider purchasing the 145usd strike price Calls with
an expiration date of 2025-1-17,
for a premium of approximately $5.85.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Dell (DELL): About the wild ride - what's next after a 31% pump?No way Dell follows the analysis like this for months 😳 We told you about the wave B at the top, the wave ((ii)) a little lower, and our must-hold zone was just barely tagged—and now it’s pumped 31%...
Incredibly accurate, but we didn't enter as this stock is too volatile for us personally. Still, we’re going to monitor it from time to time for you because it remains highly interesting.
After the latest surge, we’re expecting a pullback for wave ((ii)). The best case for this pullback would be the golden pocket between the 50% and 61.8% Fibonacci retracement levels.
That said, this stock is very volatile, and it could pump even more before coming down to make this essential pullback.
Every Time DELL Has Crossed The 200 Day...Dell just crossed the 200 day MA on the daily chart! When that has occurred in the past its signaled a significant move to the upside NYSE:DELL
DELL to fall downaccording to the chart, there is no buying happening at the top. thus, the possible scenario is falling. in addition, there is a divergance in the RSI.
Is DELL Ready To Make Its Move???NYSE:DELL – Weekly and daily now show bullish structure forming after selling off for the last 5 week. Also, positioning is heavily swayed towards the call side with 30k+ Open Interest on the 160 and 180 strikes. On the downside the 85 strike has 12k Open Interest which is where NYSE:DELL gapped up from 81.9 - 85.4. Ideally would like a gap down on open under 90 to look for longs.
Dude, you're getting some DellOkay, Okay, that was cheesy. I hated those commercials just as much as you.
Down 50% in two months? Sign me up to start a position. I understand that the downtrend might not be over, but I'm certainly comfortable with starting a position and averaging down, should it be necessary. Actually, I'm not going all in so happy if it falls more but a sideways trend when you are spacing out your purchases is preferable.
From a technical standpoint on the yearly chart, Dell is currently 30% below the 20-day MA. Back in May 2024 when Dell peaked, it was 30% above the 20-day. It pulled back quickly after earnings to hover around the 20-day. For the most part, it does not like to drive too far away from the 20-day.
Also, currently below the 200-day MA which is cause for concern, but again, starting a position with the understanding that tougher roads might be ahead. However, this thing may trade sideways or go back up after earnings (8/30).
Fundamentally, I'm not going to steal snap shots from analyst reports, but this is a solid company with a recent 50% drop. These are the types of opportunities I look for as I believe this is an overreaction to the overall market.
Dude, I'm buying some Dell.
I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained in this post is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
DELL to $106.50Price at bottom channel
Stochastic Momentum Index (SMI) at oversold level
TTM Squeeze momentum is down
Price at Fibonacci level
DELL to $98Price at bottom channel
Stochastic Momentum Index (SMI) at oversold level
TTM Squeeze momentum is down
Price at Fibonacci number (3.618 ex down)
DELL - Can see a bounce back to gap fillDell is seeing some uptick here. If Semis momentum continues and NASDAQ continues the trend , we can see DELL continue to upside for the gap fill.
We gonna revisit the direction after the gap fill.
Target #1 150
Target #2 165
Stop Loss - 128
Mind the Gap pleaseJensen told us to get bullish on Dell, whilst Michael Dell has sold over GETTEX: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.
DELL and the MAG 71. Comparison of DELL's Market Position to MAG 7 Companies: DELL Technologies and the MAG 7 stocks represent different segments of the tech industry. While MAG 7 companies like Apple and Google lead in software and internet services with high market caps and rapid growth, DELL focuses on enterprise hardware, including servers, storage, and PCs. DELL's strength lies in its robust hardware solutions and enterprise relationships, which contrast with the MAG 7's emphasis on software and digital ecosystems. This distinction highlights DELL's role as a critical infrastructure provider rather than a consumer-facing tech giant, emphasizing stability over the explosive growth seen in MAG 7 stocks.
2. DELL's Innovation Strategies and Their Impact on Future Growth: DELL's future growth is heavily influenced by its innovation in cloud computing, data storage, and hybrid IT solutions. By investing in emerging technologies and strategic acquisitions, such as the acquisition of EMC, DELL aims to enhance its capabilities in data management and cloud infrastructure. These innovations are crucial as enterprises increasingly migrate to hybrid and multi-cloud environments. DELL's ability to deliver integrated solutions that address evolving data and computing needs will be pivotal in sustaining its competitive edge and driving future growth.
3. Market Trends Affecting Hardware and Enterprise Services: The technology market is undergoing a shift towards cloud computing, AI, and edge computing, which impacts demand for traditional hardware and enterprise services. While hardware remains essential, the growing emphasis on cloud services and digital transformation means that companies like DELL must adapt their strategies to stay relevant. This includes embracing flexible cloud solutions, providing advanced data analytics, and integrating with AI technologies. The ability to innovate and align with these market trends will determine DELL's success in capturing new opportunities and maintaining a strong market position.
4. Competitive Landscape in Cloud Computing and Data Storage: DELL faces significant competition in the cloud computing and data storage markets from major players like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These competitors offer highly scalable and integrated cloud solutions that challenge DELL's traditional hardware-centric approach. To stay competitive, DELL must leverage its strengths in enterprise IT by offering differentiated cloud and storage solutions that provide value through performance, security, and integration. Strategic partnerships and innovations in cloud technologies will be crucial in navigating this competitive landscape.
5. Financial Performance of DELL Relative to MAG 7 Stocks: DELL's financial performance is more stable compared to the volatile yet high-growth nature of MAG 7 stocks. While MAG 7 companies typically exhibit rapid revenue growth and higher market valuations due to their dominance in software and services, DELL's performance reflects steady, incremental growth driven by enterprise demand and hardware sales. Investors must weigh DELL's reliable financial returns and consistent performance against the MAG 7's potential for higher, albeit riskier, returns. Understanding these financial dynamics is essential for evaluating investment opportunities and assessing the relative value of DELL in the tech sector.
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Buying Dell.Traders if you look at the chart, I have annotated everything and you can see that I am bullish when price gets to my demand zone. Let's hope it will play out
Long DELLPrice has memory:
Price at explosive volume tends to act as support/ resistance level. The close today revisited the significant close of March 01 (a big gap up with explosive volume). If the level fails to act as support, we know right away to step aside and close the trade. This is a high risk-reward ratio.
