VMware is on my watchlist for some time. Tech company with bright future prospects seems to be bottoming and getting ready to bounce. While Elliott Wave pattern is complete I see positive signs from technical analysis perspective as well.

As you can see in the chart below VMW has uptrended in clear five wave pattern and topped at price $ 125.25.

Recently VMW was downtrending in clean a-b-c flat pattern. While this flat pattern unfolded i’ve noticed positive MACD divergence and now I’m confident that VMW has bottomed and ready to bounce soon.

At this point I suggest waiting a few days to see if correction has ended for sure and start entering into this position.

Disclosure: Author does not have a position in VMW.

Tags: Eliott Wave, VMW

This entry was posted on Sunday, January 13th, 2008 at 2:26 pm and is filed under US Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.