Good technical signals and a possible breakout for VMWARE INC-CLASS A.

VMWARE INC-CLASS A (NYSE:VMW) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:VMW.

Technical analysis of NYSE:VMW

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, VMW scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, VMW is only an average performer.

• The long and short term trends are both positive. This is looking good!
• VMW is part of the Software industry. There are 372 other stocks in this industry. VMW outperforms 82% of them.
• VMW is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so VMW slightly outperforms the market at the moment.
• In the last month VMW has a been trading in the 120.09 - 127.89 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• Looking at the yearly performance, VMW did better than 72% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.

How do we evaluate the setup for NYSE:VMW?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:VMW scores a 9 out of 10:

Besides having an excellent technical rating, VMW also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 126.38. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 124.91, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:VMW

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:VMW and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.