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| 7/23/99
Dell Computer (DELL)
Points to watch: Dell closed near important support yesterday, 39
7/16- the high of the swing up that ended on June 22nd. The stock has
been weakening since its latest rally attempt ran into strong resistance on
July 12th at 43.38-44.25 (the 50% retrace of the 2/3-6/2 decline at 43.38,
and Gann angle resistance at 44.25). The stock spent 6 days attempting
to move past resistance before failing and beginning its latest move down on
7/16. The stock has had lower lows on each major down swing since mid
February, and technical indicators continue to weaken, with stochastics, %R,
and RSI all heading lower (RSI gave a sell signal on 7/21). A move
below the June 22nd high of 39.43 would give a sell signal, but we would
wait for the stock to move below its 55 and 200 day moving averages (38.35,
38.43) for added confirmation. Additional downside support is at 36
(the 50% retrace of the 6/2-7/16 rally). a break of the support at 36
would lead to a retest of the 6/2 low of 31.38.
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