Dell Technologies Inc. (NYSE:DELL) has captured investor attention with a Golden Cross — a bullish technical signal where its 50-day moving average ($124.16) climbs above the 200-day moving average ($121.11).
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This move underscores Dell stock's growing momentum, as at $134.30, it sits comfortably above both metrics.
A Perfect Storm: Technicals Meet Fundamentals
The timing of this technical event couldn't be better. With Dell's third-quarter earnings just a week away, due on Nov. 26 after market close, analysts are already optimistic.
Wells Fargo recently raised its price target for the company from $140 to $160, highlighting multiple tailwinds, including NVIDIA Corp (NASDAQ:NVDA) Blackwell AI server demand, a server refresh cycle, and robust seasonal trends in storage sales.
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Beyond these operational drivers, Dell's $5 billion annual free cash flow and investment-grade debt rating bolster its bullish case. The company is also benefiting from a steady PC market recovery, which analysts expect to gain traction through 2025.
Technical Indicators Are Flashing Green
Dell's technical indicators confirm the bullish momentum:
- Its eight-day ($135.02), 20-day ($130.42) and 50-day ($124.16) simple moving averages all sit below the current share price of $134.30, signaling an upward trend.
- The Moving Average Convergence Divergence (MACD) at 3.45 reinforces the bullish outlook.
- With a Relative Strength Index (RSI) of 56.28, Dell is in neutral territory, leaving room for additional gains.
Analysts' Take
Dell's stock has surged 79% year-to-date, vastly outpacing the S&P 500. Its average price target of $149.67 among recent ratings implies an 11.95% upside from current levels. With heavyweights such as Wells Fargo, Morgan Stanley and Mizuho backing the stock, investor sentiment is strong.
As Dell heads into earnings, all eyes are on whether its results will justify the technical and fundamental optimism.
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