- Technical Market Commentary -

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May 19, 2010 (FinancialWire) (By Frank Kollar) — Shares of Dell Inc (NASDAQ: DELL) had a strong rally from early March to late April, gaining 27%, but after reaching new 2010 highs on April 23, share prices have suffered substantial declines, losing 14.3% in only three weeks.

During the mini-crash two weeks ago, Dell traded below support, but quickly rebounded and because of the circumstances, we did not see it as a violation of support.

But on Tuesday, May 18, Dell again broke below, and closed below, its 50% retracement of the strong March to April rally. This forecasts lower lows ahead.

Dell has one short-term support level left at $14.57, the 61.8% retracement of the March to April rally. This level was also broken intra-day in the mini-crash. If Dell can hold and rally at or above this level we could see gains or at least a period of consolidation, but if Dell breaks below the $14.57 level, it could end up testing the March lows in coming months.

Those March lows are near the $13.00 level.

Disclosure: The Fibtimer.com Stock Timing Strategy holds a position in Dell, Inc.

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