Dell Jumps 3.53% to $111.90 as Technicals Signal Bullish Reversal

Dell Technologies (DELL) concluded the most recent trading session with a 3.53% gain, closing at $111.90 on above-average volume. This upward move follows a volatile period, warranting a multifaceted technical analysis to gauge future price direction.
Candlestick Theory
The last three sessions reveal a short-term bullish reversal pattern. The June 2nd session printed a bearish candle (high: $111.67, close: $108.08), testing the key support zone of $106–$108 established during May’s pullback. June 3rd responded with a strong bullish engulfing candle (low: $108.01, close: $111.90), closing near its high of $112.44 and confirming demand at support. Immediate resistance lies at $112.44 (June 3rd’s high), followed by the critical $115–$117 congestion zone from late May. A breach above $112.44 could signal continuation toward $115, while failure to hold $108 risks a retreat to the $101–$104 swing low.
Moving Average Theory
The 50-day SMA ($110.50) and 100-day SMA ($107.20) both slope upward, confirming intermediate-term bullish momentum. The current price trades above these averages, reinforcing support. However, the declining 200-day SMA ($118.80) caps upside potential, positioned above the price. The golden cross (50-day above 100-day) remains intact, favoring bulls, but sustained trading above the 200-day SMA is needed to validate a long-term trend reversal. Confluence at $108–$110 (50-day SMA and psychological support) strengthens this zone as a pivotal buy-the-dip area.
MACD & KDJ Indicators
MACD (12,26,9) shows bullish momentum, with the histogram expanding positively after a recent signal-line crossover. MACD’s upward trajectory from negative territory supports the rebound thesis. KDJ readings (K: 58, D: 52, J: 70) exited oversold territory and trend upward, though J-line nears overbought at 70. This alignment suggests near-term strength but warrants monitoring for overbought divergences. The indicators concur on upside momentum, though KDJ’s proximity to overbought implies potential consolidation near $112–$115 resistance.
Bollinger Bands
Bollinger Bands (20-day SMA, 2σ) have contracted markedly (width: ~6% vs. 15% in May), signaling historically low volatility and impending directional volatility expansion. Price rebounded from the lower band ($106.38) to challenge the midline ($112.50). A close above the midline could trigger a move toward the upper band near $117. Narrowing bands alongside rising volume increase confidence in an upside resolution, provided $112.50 is convincingly breached.
Volume-Price Relationship
Volume surged during the late-May decline (19.2M shares on May 30th), confirming distribution. The June 3rd rally occurred on moderate volume (6.6M shares), failing to exceed the sell-off volume. This divergence suggests cautious participation in the rebound and warrants scrutiny. However, accumulation patterns are evident in April–May (multiple >10M volume up days), establishing a foundational bid. Sustained advances require volume expansion above 8M shares to confirm conviction.
Relative Strength Index (RSI)
The 14-day RSI (56.2) oscillates neutrally, recovering from near-oversold (37.1 on June 2nd) but not yet overbought. Momentum aligns with price action, showing no bearish divergence. While RSI’s neutral stance allows room for further upside, traders should note that readings above 70 would warrant caution near the $115–$117 resistance band. Its current position supports short-term bullish bias but emphasizes the indicator’s role as a secondary warning tool.
Fibonacci Retracement
The dominant swing from the May 30th high ($116.97) to June 2nd low ($106.38) projects key retracement levels. The 50% retracement ($111.68) was decisively cleared on June 3rd, and the 61.8% level ($112.92) now serves as immediate resistance. The strong close near this threshold suggests bullish intent. A break above $112.92 opens a path toward the 78.6% retracement ($114.80) and the May high. Fibonacci confluence at $112.90–$115.00 (multiple technical resistances) highlights this zone as a profit-taking area. Downside protection rests at the 38.2% retracement ($110.43).
Confluence and Divergence Notes
Confluence is evident at $108–$110, where the 50-day SMA, psychological support, and swing low align with the late-May consolidation base. This zone validates a high-probability buying area. Divergence arises in volume patterns: despite the bullish engulfing candle signaling reversal, the lack of confirming volume on June 3rd suggests hesitation. KDJ’s approach toward overbought (J-line: 70) also diverges from MACD’s steady ascent, implying near-term consolidation risk above $112. The overarching technical framework, however, leans bullish, with Bollinger Band contraction and Fibonacci clearance supporting upside momentum toward $115–$117 if volume confirms subsequent advances.