VMware, Inc. (VMW) is now trading with a very clear set of technicals. Taken together they paint a very compelling picture of how investors and traders should be approaching VMW. The technical chart is a rich source of information and traders can get a whole of power from using it correctly.
VMW’s most recent trading session saw the stock achieve a high of $87.76 and a low of $86.25. The high in the most recent session compares poorly to the established 52-week high of $98.00 which was set by VMW on 06/01/17. The recent low represents a 59.16% since 06/27/16 which is a good sign for traders looking to capitalize on the stock’s upside. The current trading pattern for the stock is very telling when one looks at the overall sentiment of analysts. Presently there is a target price of $103.31 set for VMW, a figure which is above the most recent high set by the stock. The stock also has a beta of 0.74. Since the beta is less than 1, it can be interpreted that the stock is theoretically less volatile than the market – something traders will surely be keeping an eye on.
A few other technical indicators have now started to show themselves as the upside of the stock begins to take center stage. These indicators are worth looking at. Both the Relative strength indicator (RSI) and Stochastic measures have come into play for VMW. Based on current readings for VMW, the 14-day RSI is 33.41%. This suggests that VMW is neutral, suggesting that the stock is relatively stable in terms of upward or upward price movement. The stochastic reading is also very revealing based on current readings. In this case, VMW has a stochastic reading of 21.62%. This suggests VMW is oversold at current levels. VMW also paints a compelling picture via its 50 and 200 SMAs. VMW, based on the current trend can be considered bullish. This sentiment has created an attitude towards the stock which can be reasonably said to be positive.
Traders can bolster their view of a stock’s upside by taking a keen look at other technicals in support of the ones explored above. VMW’s -4.54 has created a negative sentiment when measured over the past 30 days. VMW has outperformed the S&P 500 by 25.09. This, has concluded initially, has created lower volatility levels when compared to other stocks in the same sector. Historical volatility for VMW is showing a reading of 24.94%. VMW also presents with an Average True Range reading of 2.02. VMW and its technical indicators now show a full picture and a very good sense of where traders need to invest their time and energy. These readings should not be ignored.