Dell Punished the Most in 11 Years on Earnings Miss

DELLNew York, May 23rd  (TradersHuddle.com) –   Dell (NASDAQ: DELL) was hammered on the open, after reporting earnings that were worse than expected.  The stock was a catalyst for the decline in the broader markets along with fear over a Greek default.  Dell reported that it earned 43 cents per share in the latest quarter. Revenue fell 4 percent, to $14.42 billion from $15.02 billion. Analysts had expected a profit of 46 cents per share on $14.91 billion in revenue.  Additionally, the company lowered guidance saying it expects revenue to rise 2 percent to 4 percent from first-quarter levels, which implies a total of $14.71 billion to $15 billion. Analysts expected $15.44 billion in sales.

Price action created a gap lower, which generating continued selling pressure for the majority of Wednesday trading session.  Dell blew through weekly supports levels at $14.30 and $13.0 dollars moving lower by 14%.  The next levels of support for the stock are $12.0 and $11.50.  Short term support is seen near former resistance near $13 dollar per share.  Dell will likely test the top end of the gap near $14.50 at some time in the near future.

The RSI (relative strength index) which measure over-bought and over-sold levels, printed near 13 which is the lowest daily level in the past year.  The weekly RSI is printing at 28 which is the lowest level in the past 3 years.

Momentum on the stock is severely negative, with the MACD reaching -.4 which equals the lowest levels on the index seen in 12-months.  The MACD (moving average convergence divergence index) created a sell signal in mid-April when the spread (12-day moving average minus the 26-day moving average) crossed below the 9-day moving average of the spread.

Note - Automated Content Created By TradersHuddle's Technical Scanner




Related Partner Headlines

    Volatile market? That's when profit potential skyrockets for options traders. Now you can get up to 50 trade opportunities a week from top options experts -- plus much more -- on our exciting new site OptionsProfits. Try it FREE!

    TradersHuddle Search

    Stock Search:


    Site Search:

    Loading

    Technical Scans

    Recent Trading Ideas

    Latest Partner Headlines

    Stock Market

    Loading
    Chart
    o Dow Jones 16,982.59 ▲22.02 (0.13%)
    o S&P 500 1,978.91 ▲0.57 (0.03%)
    o NASDAQ 4,444.91 ▼4.65 (-0.10%)
    INDEXDJX:.DJI

    Dow Jones

    Company ID [INDEXDJX:.DJI] Last trade:16,982.59 Trade time:4:31PM EDT Value change:▲22.02 (0.13%)
    INDEXSP:.INX

    S&P 500

    Company ID [INDEXSP:.INX] Last trade:1,978.91 Trade time:4:31PM EDT Value change:▲0.57 (0.03%)
    INDEXNASDAQ:.IXIC

    NASDAQ

    Company ID [INDEXNASDAQ:.IXIC] Last trade:4,444.91 Trade time:5:15PM EDT Value change:▼4.65 (-0.10%)

    In The Wires

    Copyright © 2013 TradersHuddle.com. All Rights Reserved.