Do the Technicals Indicate a Surge in VMware Stock?
Shareholder returns and stock trends
So far in this series, we’ve discussed VMware’s (VMW) fiscal 2Q18 results as well as its first-ever bond sale. Let’s have a look at the company’s technical indicators, which help traders and investors make market entry and exit decisions. Of the technical indicators, moving averages and RSI (relative strength index) are among the most widely consulted indicators.
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On August 29, 2017, VMware stock had risen ~41.0% in the trailing-12-month period. In the trailing-one-month period, this increase was ~13.4%. VMware’s stock price rose ~8.0% in the trailing-five-day period.
VMware’s moving averages, MACD, and RSI
On August 29, 2017, VMware was trading at $104.68. The stock was trading 9.0% above its 20-day moving average of $96.00, 14.0% above its 50-day moving average of $92.00, and 13.0% above its 100-day moving average of $93.00.
VMware’s 14-day MACD (moving average convergence divergence) stood at ~2.0, showing an upward trading trend, as the figure is positive. A company’s MACD is the difference between its short-term and long-term moving averages.
VMware’s 14-day RSI (relative strength index) is 76, indicating that the company’s stock is overbought. An RSI above 70 indicates that a company’s stock has been overbought while an RSI below 30 suggests that a company’s stock has been oversold.
To gain exposure to the technology sector, you can consider investing in the SPDR S&P 500 ETF (SPY) (SPX). The ETF has ~18.0% of its holdings in the technology sector.