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Cloud Stock About to Descend Even Lower

VMware broke a triple-bottom with further selling likely

   

VMware (VMW) — This was on our list of Stocks to Sell in April, where I said: “Sell VMW short at $78 or higher with a target of $65. Stop-loss orders should be entered at $86.”

On April 22, the Trade of the Day said, “Earnings are scheduled to be reported [April 23], and analysts are looking for $0.70 per share on revenues of $1.18 billion. A failure to meet this estimate could drive VMW much lower, but for those who shorted the stock, covering now for a small profit may be a wise decision.”

VMW failed again to meet analysts’ expectations, missing both its own sales forecast and analysts’ earnings estimates.

Since then, the stock has attempted to form a bottom at $70, but on Monday, broke a triple-bottom and appears headed to $60 or lower. Sell VMW short at $68 or higher with a stop-loss order at $75.

06 04 13 vmw 300x187 Cloud Stock About to Descend Even Lower
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chart key 300x84 Cloud Stock About to Descend Even Lower


Article printed from InvestorPlace Media, http://investorplace.com/2013/06/trade-of-the-day-vmware-vmw/.

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