Chart of the Day: Dell Got Hammered. Now We’re Watching for a Potential Entry.

We recently added Dell Technologies (DELL) to the Pro Portfolio Bullpen as the stock was experiencing a fall from all-time highs. Now, most shareholders get worried and nervous when a stock collapses so quickly like we saw happen in Dell, but it won’t take long for a strong company like this to turn it around.

Dell earnings are out next month and we believe will prove shareholders were right not to sell (if they were holding). We are watching and observing this stock from the sidelines, but it may not be long before we add it to the Pro Portfolio.

The stock has corrected sharply, but is rallying following a competitor, Super Micro Computer’s (SMCI), upward guidance on Wednesday. That may be enough to squeeze the short sellers in Dell which have been building of late.

The indicators have been hammered, the MACD is on a sell signal crossover while the money flow remains bearish, but that may change to positive in a couple of days. Momentum is down but a couple of positive sessions gets this turned upward.

Candles are purple here, but we’ll be watching the $500 level closely for a potential entry point.

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At the time of publication TheStreet Pro Portfolio had no position in the securities mentioned.