And now let’s move to today’s stock of the day, which is Dell. Dell has formed a technically dangerous structure on both the daily and weekly charts, and the recent price action confirms that this pattern can no longer be ignored.
On the chart, we can clearly identify a head and shoulders formation, with the shoulders marked by green rectangles. The right shoulder has now been completed, and this week price managed to close below the black neckline of the pattern. A confirmed close below the neckline is a classic technical trigger for a sell signal and signals a potential shift from distribution into a broader bearish phase.
Importantly, yesterday’s session reinforced this negative message. Price attempted to recover but failed to move back above the neckline, showing a clear lack of bullish strength and confirming that former support is now acting as resistance. This behavior strengthens the validity of the breakdown and suggests that sellers remain in control.
At this stage, Dell appears positioned for further downside continuation. The only scenario that would invalidate this bearish setup would be a rapid and decisive reversal back above the neckline. Such a move would turn the current breakdown into a false breakout, which in technical terms would actually generate a strong buy signal. However, as long as price remains below the neckline, the technical sentiment stays negative and the path of least resistance points lower.