Your pop up blocker may be preventing the MarketSmith tool from opening.
Learn how to resolve this issue.
Anyone have any thoughts on VMW's current cup w/ handle base? The handle forms higher than the left side of the cup, though technically, the middle of the descent in the base (very minimal) is in the upper half of the cup. I think $92.05 could be a legit secondary buy point assuming an upward move on >50% volume.
Well as i look at it on a weekly chart,that handle is wedging up,which to me looks faulty.good luck on it!
I'd have to agree with Chaps on this. Doesn't look good for this base. Doesn't mean that it won't break out, but I'm betting that it fails. Notice how it's attempting to make new highs with lower volume. It might fall into a base on base pattern,,, but that would be a long time to wait.
Look at the cup with handle from 6/12 to 8/21. That's what you want it to look like.
Hope this helps,
PS: Look on the weekly chart first please.
VMW's base is not perfect but it is showing clear signs of accumulation. On the weekly you see big volume support on 3 weeks on the left side of the base. You also see volume support the week of 11/19 which is in the middle of 3 tight weekly closes.
VMW has failed two recent breakout attempts (12/12 and 12/28) but has managed to close very tight the last three weeks. Following the last breakout attempt volume has been decreasing which is constructive. In addition, VMW is acting much better than some of the other big cloud names such as CRM and FFIV. Both of these are currently in the third week of a correction while VMW has moved essentially sideways over this time. If the cloud names regain their leadership position at some point which I suspect they will do so then VMW is first in line to make a run at new highs. I am long VMW from a position taken on 12/27 and am currently down -3% on the position but there has been no heavy volume selling in this tight sideways consolidation and therefore no reason to panic.
I would sell my position on a decisive move below the 20-day moving average looking to re-enter at the next appropriate buy point.
Great discussion. Thnx to all. Brad
FYI, while the high handle may appear to be wedging up - it does have a nice high volume shake out in it at the beginning - MSFT did a similar thing in its handle prior to its big run in the 90's. Also the high handle has formed a 4 weeks tight pattern with volume drying up.
I'm with chapovsk on this. I assume you all saw the news that EMC has been adding to shares to maintain it's 80% ownership after the recent price rises.
Ok gang..so u have all added to your positions or have gotten in on the break today and pocket pivot. Good luck
© 2013 MarketSmith, Incorporated. All Rights Reserved. MarketSmith® is a registered trademark of MarketSmith, Incorporated. All data provided by William O'Neil + Co. Incorporated unless otherwise noted.