Dell Breaks Support, Says Market Timer Frank Kollar

November 3, 2009

November 3, 2009 (FinancialWire) (By Frank Kollar) — Shares of computer maker Dell Inc (NASDAQ: DELL) reached important support levels late last week and on Monday, November 2.

A week ago we wrote: “With the exception of one trading day’s intra-day lows, the $14.80 level has held all declines since Dell rallied last August. This should be strong support if we continue to see market weakness in coming days.”

Unfortunately for shareholders of Dell, support at the $14.80 level has been broken. The 50-day moving average has also been surpassed on the downside.

The next support level is the critical 61.8% support at $13.86, some 4% lower. If that level is also broken, share prices could tumble as low as $12.00 in coming weeks.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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