Earnings Play: VMware
Jason Lubin August 27, 2020 11:00 AM
VMware will likely breakout to the upside from its sideways trend.
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
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