RSS feedWell, I didn’t have to wait long to spot an interesting trade, though it wasn’t one of the three I found the other day though all three - Vornado, Western Union, and AUO - continue to remain interesting. It just so happened that the day of my post, VMWare’s earnings surprised upwards and came along with a very interesting announcement that Lenovo would begin shipping VMWare software with its software solutions. This provided the catalyst for a very nice looking breakout of its recent trading doldrums.
Click Picture for Full Size
The stock jumped on high volume and more importantly entered back into its gap down region from a quarter ago. The idea here is that the stock should quickly work to retrace, likely hitting resistance around $68 per share provided that the stock can continue in strength past the blue resistance line that I’ve shown in the above chart. Unfortunately, the stock wasn’t able to hold two days ago on its initial breakout, but continued upside strength the last two days gives me confidence on an entry today as it nears my identified break into a retracement level at $63.50.
