Will VMware Stock price cross the All-time High Level of $170?

• The VM stock price is facing a strong rejection near the level of $170.
• It is trading well above the 50-day and 100-day Exponential Moving Averages.
• The net income of the company has surged by 37.46% in the previous quarter. 

The current market price of the Vmware stock –  $166.36

The Vmware stock price in its previous trading session has declined by a mere $0.12, with a fall of 0.07% intraday. It has declined by just 0.11% in a week but surged by 0.60% in a month. That indicates the stock has been consolidating in a range 

for more than a month. 

Vmware company has reported an increased revenue in both quarters (YOY). If we observe the revenue annually, it has increased from $7.09 billion in 2016 to $13.35 Billion in 2022. The company’s net profit has surged by over 37% in the previous quarter (YOY), which indicates that the company is doing great.

Vmware company has never paid any dividends to its shareholders, which makes this company unappealing to the dividend-seeking investors. The net debt of the company has declined in previous financial years. It shows that the management has taken some corrective action to reduce the debt.

Let’s explore what is hidden in the chart.

VM stock’s price formed an ascending triangle kind of pattern on the daily chart, where the price is facing rejection from the $170 level.  The uptrend of the stock is supported by the rising trendline the price has formed which is drawn in yellow. The price is consolidating in a range of $160 and $170 for more than a month. If we observe that the price is holding the gap-up level strongly, where the $160 level is acting as support.

If we consider the other demand zone, it is present at $154, $144 and $129 levels. The price has breached the $129 level in May 2023, which is not tested yet. This level will provide a strong demand if the price comes to this level. The trendline support level is present near the $163.5 level, which is acting as a crucial support for the price. 

Exponential Moving Averages

The VM stock price has been trading well above the 50-day and 100-day Exponential Moving Averages. The stock price has created a big gap between the EMA. That indicates the price was heavily bullish before. This EMA will provide the necessary support to the price.

Conclusion

The stock price is consolidating on the upper level, forming an ascending triangle pattern, indicating its readiness for another move. The Financial outlook of the company is looking promising as of now, which can boost the price further. If the price breaks this pattern on the downside, it can fall towards the level of $154 and $144.

Technical levels for the VM stock

Resistance –  $170

Support –  $154, $144 and $129

Disclaimer

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