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New York, January 22nd (TradersHuddle.com) - VMware, Inc. (NYSE:VMW) closed the trading day at $93.81, near its 50 day and 200 day moving averages set at $92.02 and $94.57 respectively. Vmware's price action placed the stock above the 50 day moving average but below its 200 day moving average, providing a nice trading setup with clear reference points.

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

Vmware seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach appears to be the best way to maximize possible movements in the stock, as traders could establish a small position in Vmware and wait for the stock to break out above the 200 day moving average at $94.57. Then they could add to the position as momentum builds with the breakout. On the other hand, if support being referenced at the 50 day moving average set at $92.02 breaks, it could signal further downside for Vmware in the horizon.

Technical Scans

Stock Market

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Chart
o Dow Jones 16,102.38 ▼272.38 (-1.66%)
o S&P 500 1,921.22 ▼29.91 (-1.53%)
o NASDAQ 4,683.92 ▼49.58 (-1.05%)
INDEXDJX:.DJI

Dow Jones

Company ID [INDEXDJX:.DJI] Last trade:16,102.38 Trade time:4:30PM EDT Value change:▼272.38 (-1.66%)
INDEXSP:.INX

S&P 500

Company ID [INDEXSP:.INX] Last trade:1,921.22 Trade time:4:30PM EDT Value change:▼29.91 (-1.53%)
INDEXNASDAQ:.IXIC

NASDAQ

Company ID [INDEXNASDAQ:.IXIC] Last trade:4,683.92 Trade time:5:15PM EDT Value change:▼49.58 (-1.05%)

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