Dell Technologies ( DELL) announced early Monday that they would be slashing of 6,650 jobs, or about 5% of their world-wide workforce. Let's check out the charts and indicators to see how traders and investors are reacting to the news.
In the daily bar chart of DELL, below, I can see a number of tests and failures of the shares to overcome the declining 200-day moving average line -- late May, November, December, January and it looks like February too. Prices are also poised to close back below the 50-day moving average line.
The daily On-Balance-Volume (OBV) line is showing weakness the past two months. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line and could turn down or up from here.
In the weekly Japanese candlestick chart of DELL, below, I see a mixed picture at best. The shares are trading below the declining 40-week moving average line and tests of this line have so far failed. The trading volume looks like it has declined the past seven or eight months.
The weekly OBV line has drifted lower since March. The MACD oscillator has improved since October but is still below the zero line.
In this daily Point and Figure chart of DELL, below, I can see an upside price target in the $51 area but a trade at $45 is needed to refresh the uptrend. A trade at $37 is likely to weaken this picture.
In this weekly Point and Figure chart of DELL, below, I can see a potential price target of $66 being projected.
Bottom-line strategy: Shares of DELL are showing weakness Monday and Tuesday could be another story. A case could be made for strength or for weakness in the days ahead. DELL is probably going to take its direction from the broader market averages.
