Trading Idea - Is Vmware close to Resistance?

Published on Thursday, 09 February 2012 05:40 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of VMware, Inc. (NYSE:VMW) are trading very close to calculated resistance at $96.30 with the current price action closing at just $94.21 placing the stock near levels that make it difficult to buy.

VMware, Inc. (NYSE:VMW) provides virtualization solutions for the desktop computer and data centers. Its solution products addresses a range of IT problems, which includes cost and operational inefficiencies, business continuity, software lifecycle management and desktop management.

Vmware's current stock range is defined by current calculated support defined at $82.80 and by the resistance level at $96.30, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Vmware, as the stock is well above support, however, as the stock pulls back towards $82.80 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $96.30 then traders will get an opportunity to enter Vmware stock by establishing a position as the stock moves to a higher range.