- Analytical Commentary -

March 18, 2010 (FinancialWire) (By Frank Kollar) — Shares of Dell Inc (NASDAQ: DELL) made four consecutively lower daily highs since reaching a closing rally high back on September 16, 2009 at $16.92.  

Drawing a line between these highs, end extending it to the right side e chart; you get a declining trend resistance line. The dates of these highs are: Sept 16, 2009, Nov 18, 2009, Jan 12, 2010 and Feb 18, 2010.

Shares also made a double bottom, reaching lows of $12.74 on Dec 9, 2009 and then again at $12.75 on Jan 29, 2010.

This also creates a pennant formation by drawing a line between these lows and extending it to the right side of the chart.

After the last lower rally high, Dell declined to a “higher” correction low. Then Dell advanced to the declining trend resistance line (upper declining pennant line) and traded right at that line (using closing prices) for six trading days.

On Wednesday March 17, Dell broke out of these patterns with a bullish breakout by rising well above the declining trend resistance line (upper declining pennant line) and closing well above it.

The new target for this advance is $15.45, a 5.9% gain. A close above $15.45 would likely result in an advance to the prior September highs up at $16.92, a 16% gain.

The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in Dell Inc.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 and 2008 bear markets, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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