VMware, Inc. (NYSE:VMW)
I own 2500 VMW shares bought at $23. Could you please guide me on the short term and long term strategy for VMW. Is it worth holding it till December, 2009. What max price I can expect for VMW and by when?
Thanks in advance.
We issued a Downtrend on VMW back on June 22nd @ $28.23 after it fell below that 50-day moving average support line. The stock has continued to trend lower since, in step with the overall market. The next area of support is the 200-day moving average which is at $25.10 currently. I would watch that over the next few days as the company approaches its earnings release date on July 22nd which should be a big catalyst. So it may hover here until investors get some news but that 200-day should provide some support until then. In terms of max price, it will be tough for VMW to get through the 50-day moving average (at $28.83 now) which is now resistance. It will need some positive earnings and guidance to get buyers to bid it well above that in the near term. Of course, should the market move much higher in the next few days, VMW and all of tech should go with it. But that is not something we are anticipating at this point.
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