Trade of the Day: VMware, Inc. Is Well Positioned for 2018

Shares of virtualization software solutions company VMware, Inc. (NYSE: VMW) rose around 61% in 2017. From a trend-following perspective and a broader technical vision, VMW's actions are also prepared to Be a big winner in 2018.

As I often point out to my subscribing clients, I believe that we currently live in a revolutionary period of technological products and services that rivals any other revolutionary period for humanity. While obviously I have not lived, say, the industrial revolution and, therefore, I am not in a position to make that call empirically, given the technological advances of recent years, most people could be pressured not to be impressed with the speed. accelerated changes in technology.

VMware with its products and services for me is one of the companies right in the middle of this rapid advance in technology products and services.

VMW Action Tables

Legend of moving averages: red - 200 weeks, blue - 100 weeks, yellow - 50 weeks

In the weekly chart for several years, we see that over the years, VMW Stock has routinely fought to overcome a well-defined horizontal resistance line around the $ 115 mark.

After consolidating below this area again in September, October caused a long-overdue break above this area. After a new test of this area at the beginning of December, a next higher section began.

From this general angle of view, VMW should now be well positioned in 2018 and towards a price target of $ 150 at the moment.

Legend of moving averages: red - 200 days, blue - 100 days, yellow - 50 days

In the daily chart, we see that the stock of VMW advanced well defined since the beginning of 2016. However, the slope of this advance began to increase in the second half of 2017 and, ultimately, the stock jumped upwards on the last November. The stock, once again, consolidated and although it continues to trade above the upper end of the range, it still looks attractive even in the short term.

From here, active investors and traders could choose to make long-side trades in case the stock breaks above the $ 129.50 area for a next bullish target closer to $ 140. Throughout In the market, participants should take into account the broader bullish position of VMW shares according to the first table above.