Poonen said success stems from the company's pivot to subscriptions and SaaS services, which is only becoming more popular with their customers. The company's technology helps make working from home not only possible, but also secure. The company partners with cybersecurity companies like Zscaler (ZS) to help.
Poonen touted VMware's Tanzu mission control software as the perfect solution for companies looking to manage applications across multiple clouds.
We looked at VMW back on May 28th, writing that "VMW's charts look positive at this point. Trade from the long side risking a close below $130."
Let's check and see what has changed.
In this updated daily bar chart of VMW, below, we can see that prices did not decline to our suggested stop close order below $130. Prices dipped earlier this month but are back up and knocking on making new highs for the move up from the March low.
The slope of the 50-day moving average line is still bullish and now the slope of the slower-to-react 200 day moving average line is turning bullish.
The On-Balance-Volume (OBV) line has been strong since the March low and is close to making a new high for the move up and the best level it has seen in 12 months.
The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in April for an outright buy signal and is now poised to cross to the upside for a fresh buy signal.
In this weekly bar chart of VMW, below, we can see that prices are above the now flat/bottoming 40-week moving average line. The weekly OBV line has been steady/improving from its March low and the MACD is getting close to the underside of the zero line and a potential buy signal on this time frame.
In this daily Point and Figure chart of VMW, below, we can see a potential upside price target in the $179 area.
In this weekly Point and Figure chart of VMW, below, we can see that the software is suggesting a price objective in the $187 area.
Bottom line strategy: If you are long VMW from prior recommendations you can continue to hold those positions and raise your stops to a close below $131 now. Add to longs above $160. Targets are $179 and $187 for now.