Tech Stock “Buy” Signal Has Never Been Wrong

Core Viewpoint - Dell Technologies (DELL) is projected to increase by 55% in 2024, despite a 7% decline in December, indicating potential for recovery by year-end [1] Group 1: Stock Performance and Trends - DELL's 260-day moving average has historically served as a bullish trendline, with the stock encountering this line twice in the last three years [1] - The stock has traded above the moving average 80% of the time over the past two months, closing above it in eight of the last ten sessions, leading to an average gain of 13.9% one month later [2] - Currently priced at $118.66, a similar gain would help recover the 14.3% gap experienced in the last 30 days [2] Group 2: Technical Indicators - The 14-day relative strength index (RSI) for DELL is at 25, nearing "oversold" territory, suggesting potential for a rebound [3] - Options traders exhibit bearish sentiment, with the 50-day put/call volume ratio ranking in the 96th percentile of its annual range [3] - The stock's put/call open interest ratio is in the elevated 70th percentile, indicating a potential unwinding of bearish positions that could support further gains [4] Group 3: Volatility and Performance Expectations - DELL's Schaeffer's Volatility Scorecard (SVS) stands at 85 out of 100, indicating a tendency to outperform volatility expectations, which could benefit options traders [4]