Back to VMW again. It did test support at $26 range while closing at $26.12 and going as low as $25.75. It did meet up with the demand at that place. The resistance at the $32.50 area is still formidable and it broke down from there after 2 1/2 weeks. The earnings gap up was nice but in the euphoria was short lived it seems. Perhaps some one got an opportunity to sell into strength!
Check out the volume swell of 200-300% after earnings jump. Typical breakout feature? With the benefit of hindsight (which makes one appear so smart), the volume swell appears to be selling into strength.
Hmmm.....
Today's candle is formed like tombstone doji (the body is mere 2 cents). But it is not coming after a sustained uptrend. Today's action was supported at the window of pre-earning.
Testing of support at $26.50 (while the issue stays in a channel) seems likely. Forming a higher low is also possible. The main issue is the overhead supply at $32.50 area. That supply needs to be exhausted for the bulls to advance. But then the road to $40 is relatively clear.
These are my 2 cents!
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