Dell Technologies Elliott Wave analysis: Wave IV completion signals start of a new bullish cycle

After completing a three-leg correction within the blue box and breaking out of the red channel, Dell Technologies (NYSE: DELL) resumes its next impulsive bullish phase.

Dell Technologies (NYSE: DELL) shows a strong Elliott Wave structure on the weekly chart, suggesting that a long-term uptrend is in progress. The larger count reveals that the stock completed a major wave III peak and then entered a wave IV correction before turning higher again.

From the wave II low, Dell formed a clean five-wave advance —labeled ((1)), ((2)), ((3)), ((4)), and ((5))—to finish wave III. After this top, the stock began a complex correction marked as wave IV, unfolding as a double three pattern ((W))-((X))-((Y)). This decline stayed within the red descending channel, showing textbook Elliott Wave behavior.

Wave IV correction and blue box reaction

Inside wave IV, each segment developed three legs, creating symmetry between waves ((W)) and ((Y)). The final move down reached the blue box support zone between $71.42 and $45.61. This 100%–161.8% Fibonacci extension area often acts as a high-probability reversal region in Elliott Wave analysis.

As Dell touched this zone, the price respected the lower edge of the red channel and bounced strongly, confirming the end of wave IV. The reaction from the blue box produced a sharp and impulsive rally, forming a new five-wave sequence within wave V.

Current outlook

At present, Dell is nearing completion of wave ((1)) likley with one last push higher following a short-term pullback within wave ((2)). As long as the stock stays above the invalidation level at $66.34, the bullish outlook remains intact. Analysts at Elliott Wave Forecast maintain a “We Do Not Recommend Selling” stance, expecting further gains once the pullback ends.

In short, Dell’s clear three-leg correction, its respect for the red channel, and the powerful breakout from the blue box all signal that a new bullish cycle has started.