Earnings Play: VMware

VMware will likely breakout to the upside from its sideways trend.

Uptrend 2

Today, after market, VMware (VMW) is anticipated to report second quarter EPS of $1.45 compared to $1.60 last year on revenue of approximately $2.8 billion vs. $2.4 billion a year earlier. The company is an industry leader in virtual machines for data center servers and computer desktops, and its current analyst consensus rating is 20 buys, 6 holds and 1 sell, according to Bloomberg.  

Technically speaking, on a daily chart, VMware's stock price has been consolidating in a sideways trend since mid to late-July. The RSI is currently sitting at 55. Price will most likely breakout above the 147.00 resistance level given that the technology sector is the best performing group, and that we are in a bull market making new highs. Price will probably continue to advance towards the next resistance level of 156.00 and reach for the 2020 high of 163.00. If price is rejected at the 147.00 level, traders should look for a bounce off of the 135.00 support level. If price breaks below 135.00, it could send price back to 128.00, a bearish signal.             



Source: GAIN Capital, TradingView

More from Earnings

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.