Dell Close to Resistance

Published on Friday, 27 January 2012 08:04 Written by Christopher Lynn

New York, January 27th (TradersHuddle.com) - Shares of Dell, Inc. (NASDAQ:DELL) are trading very close to calculated resistance at $17.00 with the current price action closing at just $16.69 placing the stock near levels that make it difficult to buy.

Dell Inc. (NASDAQ:DELL) designs, develops, manufactures and sells computer systems worldwide. The Company sells personal computers, servers and networking products, storage systems, mobility products, software and peripherals, and services. Dell mainly direct markets its products to corporations and consumers, and use distributors and retailers in a limited way.

Dell's current stock range is defined by current calculated support defined at $14.59 and by the resistance level at $17.00, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Dell, as the stock is well above support, however, as the stock pulls back towards $14.59 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $17.00 then traders will get an opportunity to enter Dell stock by establishing a position as the stock moves to a higher range.