By Doug Busch
A rotation back into legacy technology stocks has taken shape, with the likes of Dell Technologies, Cisco Systems, and eBay showing renewed strength after years on the sidelines. All three have outperformed the market in 2026, warranting a closer examination of their technical setups.
Dell, a technology hardware and infrastructure company, is up 56% so far this year. The stock has risen 132% over the past year and closed higher eight of the last nine weeks. That included a 21% advance the last week of February, which was accompanied by the second-largest volume since November 2024.
Looking at the stock's monthly time frame, one can see the long sideways digestion on the ratio chart against the State Street Technology Select Sector SPDR ETF from 2017 to 2023, before a strong uptrend took hold:
This year Dell decisively broke above an 18 month consolidation period. It found support at its 50-month simple moving average in 2022/23 when it broke above a $61.64 cup base pivot that was recently retested last April with a rare doji candle. This month Dell is breaking above a double bottom with handle pivot of $168.08, which also negates a bearish engulfing candle from November.
Last month I wrote about this stock's bullish prospects and am now willing to adjust my target higher. Look for the stock to travel toward $280 over the next 12 to 18 months, which correspond to a 43% gain from current prices. Remain bullish above $172. Dell was trading around $200 Monday.
Cisco, a networking technology company, is up 54% over the past year and has gained 12% in 2026. The stock posted back-to-back weekly gains of 4% and is now trading into a bearish engulfing candle. It declined 9% the second week of February after an earnings reaction clouded by higher memory prices.
Looking at the stock's daily chart shows it is breaking below a six-month uptrend on the ratio chart against the XLK:
However, the stock is gradually climbing the "wall of worry." It now looks more comfortable above the round $80 number, a battleground area dating to December. The gap up on April 8 completed a bullish island reversal preceded by the earnings gap down on Feb. 12. Last Friday broke above an $84.07 cup with handle pivot, in a base that began with a bearish shooting star on Feb. 10. The breakout also negated a bearish evening star, marked by a doji candle on March 26.
Look for the stock to travel toward the very round $100 number in mid-2026, representing a 14% gain from current prices. Remain bullish above $82. Cisco was trading around $86.50 Monday.
eBay, an online internet marketplace, is up 20% year to date and 59% over the past year. Last week the stock jumped almost 10%, its best weekly advance since August. In February, the company made an acquisition from Etsy, which caused both stocks to jump on the news.
Looking at the stock's daily chart one can see how round number theory came into play at the very round $100 figure:
Resistance occurred Aug. 20, marked by a bearish shooting star, and Oct. 29, indicated by a long spinning top candle. Note how well the stock has performed against Amazon on the ratio chart dating to November. Last Thursday, it broke above a cup base trigger of $101.35, shrugging off a doji candle in the process. This pattern was eight months long. Remember that the longer the base, the more success prone it likely is upon breakout. The depth of the cup base had a gap fill from the July 30 session on Nov. 3.
Look for the stock to travel toward $125 by mid 2026, a 20% gain from current prices. Remain bullish above $95. eBay was trading around $105 Monday.
With momentum building, these once-overlooked names may be entering a period of renewed leadership.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
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April 20, 2026 10:47 ET (14:47 GMT)
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