VMware (NYSE:VMW) is one of those companies that people love. Even if they're not entirely certain about what it is that the company does. That's about all I know of the company. Oh, that and the fact that EMC (NYSE:EMC) own a big stake VMW and there are rumors of a total buyout. That's good news for the stock price, which is launching higher as the broad market starts August to the downside.
But when I look at the stock's price chart 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 stock's moves 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'll 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.