VMWare shows real and relative strength

• Posted by Greg Harmon
• on August 3rd, 2015

VMWare, $VMW, does some kind of tech stuff that people like and has a cool logo. That is about all I know of the company. Oh, that and EMC has a big stake in it and there are rumors of a total buyout. That is good news for the stock price and it is launching higher today, while the broad market starts August to the downside.

But when I look at the chart of the stock price it has been moving up for almost a month. So not only is there relative strength today, but real strength too. One other thing about the chart. it looks ripe to continue higher.

The chart above shows the stock price pulling back from a high just shy of 104 in August. Reaching a bottom in January, it started back higher, building a rounded bottom. Since April the pushes higher have run into resistance between 90.80 and 92. The latest thrust higher is at that range now. Like the high in April the RSI is bullish and rising and the MACD is also rising.

But the MACD is still well below the levels where it has reversed at prior peaks. Also this time the price is rising inside of the Bollinger Bands®. Is the the one? We will find out soon, but if it is look for a move to the 98.50 to 103.50 range as it continues to build the Cup.

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