Vmware Is Close to Resistance
Published on Tuesday, 29 January 2013 06:00 Written by TradersHuddle Wire
New York, January 29th (TradersHuddle.com) - Shares of VMware, Inc. (NYSE:VMW) are trading very close to calculated resistance at $98.56. The stock ended the trading session at just $98.32, which is near levels that make it difficult to buy or start a position.
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's stock range is defined by its calculated support defined at $91.9 and by the resistance level at $98.56; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Vmware. However, as the stock pulls back towards $91.9 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $98.56 then traders will get an opportunity to enter the stock as it moves to a higher range.