Dell Technologies Inc. (ticker: DELL) jumped more than +11.0% higher on Wednesday, cementing a fresh record high for the stock at $150.28 and closing with a market cap of over US$100 billion. Behind the push higher was Morgan Stanley reiterating its buy rating on the stock, increasing its price target to $152.00, citing that this stock is the best way to play the AI server momentum.

Strong Breakaway Gap

Wednesday gapped higher on increased volume, forging what many technical analysts will recognise as a Breakaway Gap ($134.56-$138.88) and shattering the upper boundary of a rising wedge pattern ($104.66 and $131.06). The breakaway gap, as a result, is now considered a possible support area. What you will also see is the Ichimoku Cloud (the difference between the Leading Span A and Leading Span B) is just below the breakaway gap support area, which could help bolster any retest of the recent gap. We can also see that the conversion line (blue) is above the base line (red), and that price is very much below the Lagging Span, all of which are bullish signals.

Price Direction?

The trend is clearly in favour of buyers after reaching another record high yesterday, and this opens things up for a possible correction. The Breakaway Gap and the Ichimoku Cloud are areas of support that might show if a correction forms and, therefore, may be somewhere that trend followers (dip buyers) are drawn to.

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