The shares of Dell Technologies (DELL) have been cooling off over the past several weeks, after the security hit an April 19, all-time high of $103.78. Traders shouldn’t look away just yet, though, as the equity remains up 124.5% year-over-year. What’s more, shares have just recently pulled back to a trendline with historically bullish implications, which could send DELL back towards its record peak.
More specifically, Dell Technologies stock just came within one standard deviation of its 40-day moving average, after spending the past few months above this trendline. According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, five similar signals have occurred in the past three years. The equity enjoyed a positive return one month later in 80% of those cases, averaging a 6.1 % gain. From its current perch, a comparable move would put DELL just over the $100 mark.
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Should pessimism begin to unwind in the options pits, the security could surge even higher. This is per DELL’s 10-day put/call volume ratio of 1.48 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 90% of readings from the past 12 months.
Plus, DELL options are affordably priced at the moment. The security’s Schaeffer’s Volatility Index (SVI) of 31% sits in the 25th percentile of its annual range, meaning options players are currently pricing in low volatility expectations for Dell Technologies stock.
