For today's chart we've chosen to take a look at Dell Inc (NYSE:DELL) because it is testing the support near its 52-week low. As you can see from the chart below, the $19 level has propped up the price several times over the past few weeks and it will be interesting to see if this story will be able to continue. Bullish traders will watch for a bounce off the trendline and they will likely protect their positions by placing a stop-loss order below $18.87.
On the other hand, we believe that the bears will wait for a move below the support level before betting on a continuation of the downtrend. This stock will likely remain on the radar of many technical traders because the short-term direction will become clear once the price tests the strength of the support.