A look at VMware Inc. — Pullback to Prior Resistance
VMware Inc. ($VMW) averages are at $93.97 (21 day SMA), $89.11 (50 day SMA), $80.75 (200 day SMA). Over the past 52 weeks VMW has traded from a low of $64.86 to a high of $101.52. VMW was last at $88.80 on a volume of 1,130,370. Average daily volume has been at 2,221,175.
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VMware (VMW) has been trending higher since establishing a low last July at approximately $65, printing higher highs and lows in a wide-ranging channel. Back in September, the stock peaked at $90 before correcting for several months, thus establishing $90 as effective resistance. The recent run-up to $102 broke through that prior resistance level. A central tenet of technical analysis is that resistance, once broken, will often serve as support on subsequent pullbacks.
Technical traders and apply this theory by looking at how VMW trades at current levels. If VMW starts closing back above $90, then we can view $90 as effective support — another higher low in an uptrending stock.
VMWare, Inc., is a provider of virtual infrastructure software solutions from the desktop to the data center. It works with more than 1,300 technology partners, including server, microprocessor, storage, networking and software vendors.
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