Dell Technologies Inc (DELL) stock is down 1.4% at $127.37, ending a five-day win streak due to tech sector headwinds. The stock is 24% off its 12-month high but is testing a bullish long-term trendline. The 12-month moving average has historically led to significant gains after pullbacks.

Short interest in DELL is up 11.1%, with 20.60 million shares sold short, accounting for 6.6% of the total float. The stock’s Schaeffer’s put/call open interest ratio (SOIR) is in the 99th percentile, indicating high bearish sentiment. An unwinding of bearish bets could fuel further upside.

DELL options are attractively priced, with a Schaeffer’s Volatility Index (SVI) of 42% ranking higher than just 11% of readings from the past year. The Schaeffer’s Volatility Scorecard (SVS) is 83 out of 100, showing consistent higher volatility than priced in options.

Read more at Yahoo Finance: Signal Says “Buy the Dip” on This Struggling Tech Stock