VMWare $VMW pushed into fresh historic highs while the general equities market started to contract in October. Eventually, VMW was also dragged down by market risk. But because it showed resilience at first, we might consider VMW as a buy-on-the-dip candidate.VMW Daily Chart(click to enlarge)Correction:- While price did break into fresh all time highs, VMW is effectively in a sideways market. - The range is under the $170 market and above the $108.25 mark. - Note that price has recently fallen below the cluster of moving averages (200-day, 100-day, and 50-day)- Also price is testing the "central pivot" of the range nad so far seeing some support. - However, I believe the latest dip reveals weak bulls and suggests further downside. - Because VMW is NOT bearish, this projected bearish swing would be within the context of a sideways-bullish market.- I would start looking for support around $120 and consider averaging in under $108. - A break below $100 would be a bad sign and would suggest an exit to the long position.Reward to Risk:- Let's look at the reward to risk if we get a position in at $120 and then at $110.- The average would be $115. - If a stop is at $95, we have a 17.4% risk.- A target of $160 yields a 39.1% reward.- This trade has a slightly better than 2:1 reward to risk, WITHOUT requiring continuation of the bullish trend. - A target of $175 (fresh highs) for example, would yield a reward to risk of about 3:1.