Dell Technologies Inc. (NYSE:DELL) is trading at a moving average convergence price of $56 to $57. The share price also appears stable in the region of $50 to $60. The company appears to have been saved from the growling bears that have been mauling technology stocks.
This, however, is the calm before a storm. It is highly unlikely that DELL will remain at the same levels in the wake of the Russian invasion of Ukraine.
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While DELL releases the results today, it may not matter what those results will look like. The Russia-Ukraine war creates very special circumstances.
Investors are reallocating capital from stocks to commodities as inflation makes it hard to move the capital to fixed income. The expectation for DELL is that the share price will crash as the market responds to the developing geopolitical risk.
DELL under pressure
Technical analysis shows DELL at a high of $57. The 10-day moving average converged with the 20-day moving average. With the two averages being only $3 above the 50-day moving average, there is no significant divergence.
The share price is likely to tank below $50 today and further down as the crisis in Ukraine pulls in the United States. DELL is a strong sell considering the uncertainties of the market in times of war.
Summary
DELL weathered the threats of a bear market from the beginning of the year to sustain the current high of $57. The company also has good performance and strong fundamentals, which do not matter much in the special circumstances of war. DELL is a strong sell as the market reacts to the Russian war on Ukraine.
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