Here’s how I’m trading Dell ($DELL) (March 29, 2019)DELL
Dell ( NYSE: DELL ); a nice move higher here. Michael Dell is a genius; this guy is amazing and the cool thing is he is also normal, which is kind of rare these days.
The stock here, it had been DVMT, it had been a different company, the Internet of things and stuff like that. Everything kind of got wrapped up into Dell ( NYSE: DELL ) here. This guy has been on fire; the stock came up here at the end of February, pulled back, and then right around here they reported earnings, I think it was here but honestly I forget.
I just know this, I had wanted to own the stock for a long time. Before I kind of traded around it and then, honestly, I lost track of it. So then when the stock breaks out here I am in buying the stock and I am still hanging onto to it. Now I see that the stock has actually pulled back after earnings. We don’t know how far back this stock is going to go. This could be a total gap and crap back to $50.00, that’s a little embarrassing. Instead, the stock just drifted down and now we are finding support at $57.00.
Here’s the deal: I am showing you this stock, it isn’t exciting but it is a pretty good entry. You can look at Thursday’s intraday low as the low; we’ll call it $57.00. You are setting your stop a little bit below that level and then this is what you are expecting, you are expecting the stock to continue to march higher or at least form this type of move here, like this would be support. Connecting two dots is not a trendline that is just the shortest distance between two points with extensions on each side.
But if Dell ( NYSE: DELL ) stays above this level then at some point you are going to see it tag this trendline and then move higher. So for the time being all we’ve got are these two things to go on. I am not going to try to do some kind of magic with this, I would have to be bending the line. We’ll just say this, it looks to me like 57.00 is support for this stock. You can buy this stock right now and just kind of hang onto it. Calls and puts are actually pretty attractive as well. And what I mean by that is, to sell them, not buy them; to be selling puts and own the stock at a lower price.