Dell's breakout is confirmed; pullbacks to the downtrend line are buy opportunities for further upside.

Next, following up on Dell, folks, we reported on that after trading hours yesterday. I was highlighting the fact that if the price opens above the $468 level tomorrow. This will clear the area and remove the upper resistance, pushing Dell's stock higher above this descending trend line as a breakout. But guys, look at the graph for 10 minutes. We did not open above that level. You can see that we opened at 462.05. Let me enlarge this drawing so that you can understand what really happened. We hit the resistance trend line directly and by doing so broke through it . This is what can happen, guys, it's a bit like a trampoline when you jump on it. This line is like a trampoline. Notice how the trampoline can push upwards, but at the end look at the rejection it faced there . This is the value used to determine a key breakout level. If the price opens above or below it, as I explained yesterday, it will have to expend a lot of energy to break through that level. He has already tried to do that . It reached 483.94, which is much higher than the $468 level. But look at that reversal down to $432 and then back straight back to $497.99, forming a 10-minute top tail at the end of the day. Wild price movement for Dell stock. But looking at the end of the day, what happened? The stock closed above this downtrend line. Now to confirm this type of closure, and to provide support for the downtrend line. We need to see Deal close above this candle daily in the coming days . This will provide sufficient confidence and room away from the support level so that any pullbacks can be buying opportunities. We'll see if Dell can achieve that feat tomorrow. Otherwise, near-term resistance, a double top here at $514. Given how Dell bounced today, I see no reason why it can't rise tomorrow if we have a similar day in the markets.