Dell Stock Jumps 4.52% On Bullish Technical Breakout

Dell Technologies (DELL) closed at $133.93 on August 7, 2025, marking a 4.52% single-day gain with strong volume of 5.68 million shares, indicating renewed bullish momentum after recent consolidation.
Candlestick Theory
The August 7 session formed a robust bullish candle with a narrow lower shadow ($130.11 low vs. $134 high), reflecting decisive buying pressure after testing support near $128–$130. This pattern resembles a bullish engulfing formation when contextualized against the prior session’s down candle (August 6: -1.79%). Key resistance is now established at $134 (recent swing high), while the $128–$130 zone serves as immediate support, reinforced by the August 1 and June 26 swing lows.
Moving Average Theory
The 50-day moving average (MA) near $122, 100-day MA near $117, and 200-day MA near $110 all slope upward, confirming a long-term bullish trend. The current price trades well above all three MAs, while the 50-day/100-day golden cross in late May 2025 signals accelerating momentum. Short-term consolidation in July tested but held the 50-day MA, reinforcing its role as dynamic support.
MACD & KDJ Indicators
MACD shows a bullish crossover, with the histogram turning positive on August 7 as the signal line recovers from oversold territory. KDJ’s %K line (85) crossed above %D (78) from below, indicating building upward momentum. Neither oscillator yet signals overbought conditions (MACD < 0.5, KDJ < 90), supporting further upside potential barring divergence.
Bollinger Bands
Price rebounded sharply from the lower Bollinger Band ($126 on August 6) to pierce the upper band ($133) on August 7—a sign of bullish conviction. The bands are expanding after a contraction period in July, implying volatility-driven upside continuation. A sustained close above the upper band may foreshadow short-term overextension but aligns with strong breakout momentum.
Volume-Price Relationship
The August 7 surge occurred on above-average volume (5.68M vs. 30-day avg ~5.1M), validating bullish intent. Notable accumulation was observed during prior key upswings: June 26 (+4.58% on 9.43M shares) and July 18 (+5.94% on 11.03M shares). Recent distribution episodes (e.g., August 1: -4.05% on 5.52M shares) lacked follow-through, suggesting transient profit-taking rather than structural weakness.
Relative Strength Index (RSI)
The 14-day RSI (58) rebounded from near-oversold levels (30.5 on August 1), now hovering neutrally. This recovery leaves ample headroom before overbought territory (>70), reducing immediate reversion risk. Notably, July’s price consolidation formed a bullish RSI divergence (higher lows against price’s flat base), foreshadowing the current breakout.
Fibonacci Retracement
Applying Fib levels to the April 7–August 7 uptrend (swing low: $66.25, high: $134) shows robust defense of the 23.6% retracement ($118.01) during July’s pullbacks. The current breakout eyes the 138.2% extension ($147) as the next technical target. Confluence exists at $134 (psychological resistance + recent high), where a decisive close could trigger accelerated momentum.
Confluence and Divergence
Confluence is evident at $134 resistance, where the candlestick high, Bollinger Band upper limit, and psychological level converge. Bullish alignment is strengthened by volume-supported price action, MACD/KDJ momentum inflection, and RSI recovery. No material divergences are observed; all oscillators harmonize with price structure. Probable breakout above $134 would open a measured-move target near $147, though failure to hold $130 may trigger retracement toward $122–$125 (50-day MA + Fib 38.2% level).