Insights 
VT 
Dell Technologies has entered a new upward phase after completing a three-leg correction and breaking out of a descending channel. The weekly chart reveals a strong Elliott Wave pattern, indicating a long-term uptrend.
The stock completed a major wave III and subsequently went through a wave IV correction, marked by a double three pattern within the channel. This correction reached a support zone at the blue box, between $71.42 and $45.61, a key area for reversals.
The stock rebounded from this zone, signalling the end of wave IV and beginning a new five-wave sequence in wave V. Currently, Dell approaches the end of wave ((1)), with a final push expected following a wave ((2)) pullback. As long as prices remain above $66.34, the bullish outlook continues.
The stock’s completion of a three-leg correction, adherence to the red channel, and breakout from the blue box suggest a fresh upward cycle has commenced.
Dell Technologies appears to have completed a major corrective phase, what we identify as wave IV. This move found a bottom within a key Fibonacci support zone between $71.42 and $45.61. The sharp rebound from this area signals that a new bullish impulse, wave V, is now underway for the stock.
For the coming weeks, we anticipate a short-term pullback as the initial rally, wave ((1)), likely finishes its course. This expected dip, labeled wave ((2)), will offer a more strategic entry point for new bullish positions. Derivative traders should therefore practice patience, as buying into the peak of this first move is less than ideal.
This technical outlook aligns with strong fundamental tailwinds, especially after Dell’s last earnings report in September 2025 showed a 32% year-over-year increase in AI server shipments. Market sentiment is also bullish, with options data from last week showing a notable uptick in call buying for the January 2026 expiration dates. These factors support the view that institutional money is positioning for higher prices.
Considering the anticipated dip, selling cash-secured puts with strike prices near the $75 level could be an effective strategy to collect premium while waiting for a better entry. Alternatively, traders can wait for the pullback to stabilize before buying call options dated for March 2026 or later. This provides enough time for the larger wave V to develop without suffering significant time decay.
We must remember the stock’s choppy, downward-trending price action for most of 2025, which formed this entire corrective pattern after the powerful rally seen in 2024. All bullish strategies should use the $66.34 price as a critical stop-loss or invalidation point. A sustained break below this level would indicate that the wave IV correction is not yet complete.
