This morning, the leading virtualization infrastructure solutions provider VMware Inc. (NYSE:VMW) was trading higher after reporting earnings. While the stock is trading higher on the back of the news, it could be coming under distribution in the near future.
Please note, the weekly time-frame on VMW has been consolidating in a very bearish manner over the past three months. Traders and investors should be aware that anytime a stock consolidates sideways after a major decline, it is setting up to resume selling in that direction again. This pattern is very evident on the weekly and monthly charts. When a break-down does occur in the stock, the projected target would be for a decline into the $85 area. Make special note of these levels as they will provide great trading opportunites. 