Computer hardware stock Dell Technologies (DELL) has been consistently climbing since its early April lows, sporting a 14.8% year-to-date lead. The rally has taken a pause over the last week, however, giving the ascending 50-day moving average time to catch up.
Similar moves have preceded bullish activity in the past. Per Schaeffer’s Senior Quantitative Analyst Rocky White, DELL is now within 0.75 of the 50-day trendline’s 20-day average true range (ATR), after spending at least 80% of the last 10 days and 80% of the last two months above it. Over the past three years, six similar signals have occurred, after which the equity was higher one month later 83% of the time with an average 15.5% gain. A comparable move from the stock’s current perch at $132.53 would put it at $153.07, its highest level since June 2024.
When weighing in, options look like a good way to go. DELL’s Schaeffer’s Volatility Index (SVI) of 39% sits in the low 7th percentile of its annual range, meaning options traders are pricing in low volatility expectations.