To-day looks like the re-test of the low near $42. Needs to hold $42 to be successful. Looks like buyers want to support the price at that level.
That's exactly the time to buy a stock. When retail investors like you give up on it. Now watch it go to $50 in the next few weeks
Why so many call options at $45.00 dollar strike? Yesterday over 2000 traded then again another 2500 traded. Someone is paying .40 to buy red hat at $45.00 until November 16th. I wonder why? Any ideas ?
Sentiment: Strong Buy
Up early then lower throughout the day. Nothing new for RHT shares. This will repeat itself until it gets low enough and institutions will drive up the price, usually when the retail investor gives up.
Momentum traders go with momentum. They buy stocks at 52 week highs thinking they will keep going higher and higher and sell stocks at 52 week lows thinking they will go even lower. Not my strategy, but that's what momentum traders do, until the momentum turns convincingly.
Expect a lot of head fakes before this makes a meaningful move higher. Shorts will try to press this lower. Good news or an upgrade is needed to shake out all the sellers.
why should a trader bother with companies that have had theirr run when there are companies ripping up on momentum. Redhat was a hot stock at the start of this bull cycle and it will be again when the easy stuff falters
Shorting momentum stocks like NFLX isn't working so the shorts are looking for stocks near 52-week lows like RHT to short. This will need an upgrade or positive news to shake the sellers and shorts that are pressing their bets because they have no where else to turn. Momentum stocks have been killing them.
Re-test in full progress now that $43 is broken. Magnet to $42. Go ahead and sell if you have weak hands, but you will regret it when this gets back to the high $40s
Despite the lack of buyers in the stock, it appears options traders are bullish in the near term. Chart looks like it is poised to go higher based on the MACD.
Typically when a stock is sold off, institutions won't buy until the recent low is re-tested. Seems to be a universal law they follow. So it should re-test $42 before going much higher. However, an upgrade by a reputable analyst could also lift the stock. Patience will pay off.
Najarian's not a technician. The chart clearly shows a reversal. Take a look at the MACD. Downside momentum is clearly loosing steam, and upward is building. Should break out soon.