VMWare, Inc. (VMW) was reviewed last month and I wrote that, "Traders looking to go long should buy strength above $140, risking below $120 looking for gains to the $175 area in the weeks ahead."
One month on and we can see that VMW pushed above $140 but has not reached our $175 target. Let's see if the indicators are still pointed up.
In this daily bar chart of VMW, below, we can see that prices are above the rising 50-day moving average line as well as the bullish 200-day average.
The daily On-Balance-Volume (OBV) line is overall constructive but the line has not kept up with new highs the past two months. This is a bearish divergence but not so terrible in the scheme of things.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and rising.
In this weekly bar chart of VMW, below, we can see that prices are above the rising 40-week moving average line.
The weekly OBV line is neutral and has diverged from the price gains.
The weekly MACD oscillator is bullish.
In this Point and Figure chart of VMW, below, we can see an upside price target of $178 being projected.
Bottom line: The daily and weekly OBV line has not confirmed the price gains. Volume is a secondary indicator in many respects so VMW may well continue to rally. Raise stops to just below $130 as we continue to set our sights on the $175 area.
