Dell Stock Jumps 7.2% In Two Days After 4.5% October Slump

Dell Technologies (DELL) gained 3.51% to close at $150.87 in the latest session, extending a two-day advance totaling 7.20%. This rebound follows a sharp 4.50% decline on October 3rd, positioning the stock near the upper end of its recent range. The analysis below synthesizes key technical perspectives based on price and volume dynamics over the past year.
Candlestick Theory
Recent sessions show a bullish reversal pattern emerging from the $140.74 support level established on October 3rd. The October 6th candle formed a long-bodied white candle closing near its high ($145.76), followed by an even stronger white candle on October 7th that engulfed the prior two days’ range and tested resistance near $154.7. This two-day surge on expanding volume signals conviction, with $154.7 now acting as immediate resistance. Support is reinforced near $140.74, aligning with the October 3rd swing low.
Moving Average Theory
The 50-day moving average (centered near $135) has consistently supported price advances since June 2025, while the 100-day MA (approximately $128) and 200-day MA (near $120) maintain upward slopes, confirming the primary bull trend. The current price trades decisively above all three MAs, and the 50-day’s sustained position above the 100-day since late July signals robust intermediate momentum. A potential bullish cross of the 50-day over the 200-day may materialize if momentum persists.
MACD & KDJ Indicators
The MACD line crossed above its signal line in early October, shifting momentum to bullish territory after September’s consolidation. However, the histogram shows narrowing upward thrust as prices challenge $155 resistance, suggesting potential deceleration. Concurrently, the KDJ oscillator’s %K (87) and %D (82) hover near overbought levels, indicating stretched short-term conditions. While no bearish crossover is yet present, these readings align with MACD’s slowing momentum near resistance.
Bollinger Bands
Price has ridden the upper Bollinger Band (20-period, 2SD) during the October rally, reflecting strong directional momentum. The bands expanded sharply as volatility increased from September’s contraction, typical of breakout confirmation. However, the recent touch of the upper band near $154.7 coincides with multiple technical resistances, increasing odds of a mean-reversion pullback toward the mid-Band near $142.
Volume-Price Relationship
The 18.6 million shares traded on October 7th mark the highest volume in over a month, validating the breakout. Notable accumulation occurred at $140–$145 during the rebound, while distribution volumes faded during September’s pullbacks. The volume profile since August shows higher volume on up-days than down-days, supporting trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI (~73) approaches overbought territory (>70) but hasn’t yet peaked at extreme levels seen during prior tops (e.g., 78 in late August). Current momentum appears less overheated than the August high near $155, though divergences would form if prices make new highs without corresponding RSI strength. Caution is warranted, but no immediate reversal signal exists.
Fibonacci Retracement
Applying Fibonacci to the August low ($95.91) and October 7th high ($154.7) shows key retracement support at $142.5 (23.6%) and $136.4 (38.2%). The October 3rd dip neatly held the 23.6% level ($140.74), demonstrating its technical relevance. These levels now converge with moving averages and volume-based support, strengthening their significance as pullback buffers.
Confluence and Divergences
Confluence is evident near $140–$142, where Fibonacci retracement, the 50-day MA, and Bollinger mid-band align with last week’s reversal volume. Divergences appear between momentum oscillators (MACD/KDJ slowing) and price strength, warranting vigilance near $155 resistance. Should volume fade on further advances, the likelihood of consolidation above $142.5 support increases. Overall, the structure favors tactical range-bound behavior between $142 and $155 before potential resumption of the primary uptrend.