November 3, 2009
Shares of computer maker Dell Inc (NASDAQ: DELL) reached important support levels late last week and on Monday, November 2.
A week ago we wrote: “With the exception of one trading day’s intra-day lows, the $14.80 level has held all declines since Dell rallied last August. This should be strong support if we continue to see market weakness in coming days.”
Unfortunately for shareholders of Dell, support at the $14.80 level has been broken. The 50-day moving average has also been surpassed on the downside.
The next support level is the critical 61.8% support at $13.86, some 4% lower. If that level is also broken, share prices could tumble as low as $12.00 in coming weeks.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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