Dell Technologies stock sports an attractive technical setup
Subscribers to Schaeffer's Weekend Trader options recommendation service received this DELL commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
Dell Technologies Inc (NYSE:DELL) stock is pulling back to a trendline connecting lower highs, with its recent low coinciding with the site of its late August, post-earnings open. The shares gapped higher after that report, and are now trading above $67.54, which is double their 2022 closing low.
Though most analysts are already bullish on DELL, there is still room for upgrades. Of the 18 firms in coverage, five still carry a tepid "hold" or worse rating. Plus, short interest is not high relative to float volume. In fact, it is just below two-year highs, and near a level that saw short covering from December to May.
It’s also worth noting that a slew of 71.50-strike calls – which may have contributed to DELL’s inability of shares to sustain a move through this level since earnings – expired last week. Our call has a leverage ratio of 6.1, and will double on a 15.7% pop in the underlying shares.