VMware Inc. (VMW) is expected to report its fiscal fourth-quarter results after the market close Thursday. I do not know how the numbers will be nor how investors are positioned for them but weakness in the broader market is overshadowing bullish news. In this kind of trading environment it does not pay to "fight the tape" as older market observers often say to younger participants.
Let's look at the charts.
In the daily bar chart of VMW, below, we can see that prices have quickly declined to come within "striking distance" of the August low. Prices have gapped lower twice this month and are below the declining 50-day moving average line as well as the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line has been weak since late November telling us that sellers of VMW have been more aggressive for a while now.
The Moving Average Convergence Divergence (MACD) oscillator is crossing below the zero line now for an outright sell signal.