DELL's Gap Island Reversal Play

Discussion in 'Stocks' started by ess1096, May 31, 2008.

  1. ess1096

    ess1096

    Resistance is just above $25.00

    With the June $25 calls at .12 and the July $25 calls at .30 I'll look for a pullback to the $22 area on Monday to buy the July $25s. If it doesn't want to pullback I'll take the June $25s.
    In either case I'll dump them when/if the stock hits $25.

    Looks like a nice, low risk play. Assuming you don't bet the farm on it.
     
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  2. You can;t have it both ways. Either it goes lower or not. pick one.
     
  3. ess1096

    ess1096

    Go away again moron. Come back when you have something useful to add to ET. Obviously you have no clue how support and resistance works.
    They are looking for you over at Elite Buy and Holder dot com
     
  4. Recall

    Recall

    I believe Dell wll continue on upwards..The earnings surprise was a huge boost and when I walked into my local Staples the first thing I saw was huge end isle displays of Dell computers with people all around them.

    I think you will do good with your calls. Actually I think you will do really good.
     
  5. dsq

    dsq

    i see dell going sideways...it got no upgrades which throws a damper on things...dell also said future earnings may be difficult etc...Its a better report than last but the st isnt impressed much...this is a mega cap stock that should have seen much stronger action imo...I might be wrong but i just dont see it going anywhere...
     
  6. If I were to play it I would wait for a bearish break, then go short. Cover on fill.
     
  7. Here is DELL's Chart with Gaps...

    Gap on May 30th qualifies for 'BreakAway' Gap from its long base. Although Gap theory is not all that perfect, most BreakAway Gaps are excellent signs of strength (above the base with High Volume) and are traded in the direction of its Gap.

    Regards,
    Suri

    [​IMG]
     
  8. Here is another example of Breakaway Gap

    regards,
    Suri

    [​IMG]
     
  9. Breakaway/Continuous Gaps on ISRG chart

    Regards,
    Suri

    [​IMG]
     
  10. ess1096

    ess1096


    Suri, GOOG is a perfect example of a gap island reversal. I was even going to post it earlier in this thread to show how DELL might trade in the near future. Thanks for posting it.

    My OP is just a short term trade to a target of $25 using options. But for anyone looking for a long term trade the DELL chart is turning bullish with support near $22 and some resistance just above $25. A close above $25.46 should be looked at as a breakout to the $30-$31 area but cross that bridge when/if you get to it.
     
    #10     Jun 1, 2008