Shareholder returns and stock trends
Technical indicators are crucial for investors and traders as they inform their market entry and exit decisions. The moving average is one of the most widely used technical indicators.
On March 22, 2018, VMware (VMW) stock had risen ~35.0% in the TTM (trailing-12-month) period. However, in the trailing-one-month period, it had fallen ~3.4%. Previously in this series, we discussed the factors that played a role in VMware’s stock surge in the last year.
However, in the last two months, Dell has been considering strategic options such as a reverse merger with VMware. This possibility has taken a toll on VMware stock, which has fallen ~4.1% year-to-date.
In comparison, Microsoft (MSFT) and Citrix Systems (CTSH) have generated returns of 38.2% and 12.0%, respectively, in the trailing-12-month period. Red Hat (RHT) generated a positive return of 82.0% in the last year.
VMware’s moving averages, convergence divergence, and RSI
On March 22, 2018, VMware’s last trading price was $122.10. The stock was trading 2.0% below its 20-day moving average of $125.00, 3.0% below its 50-day moving average of $126.00, and 2.0% below its 100-day moving average of $125.00.
A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. VMware’s 14-day MACD of 0.02 shows a minor upward trading trend, as the figure is positive.