I'm not much of a TA follower, but I made a few observations the last few days and wanted to get a TA guru's take on them.
RDWR has made serveral "cycles" between the low $40's and the upper $40's (on which the radwarebear claims to hit just about every time with his shorting). During the last one, however, I noticed two things. First, the low was not as low. I think it just dropped to $43+ this time. Second, the rise we're experiencing now was almost immediately after the low (whereas in the past RDWR hung around the low for at least a few days).
Of course, today we have the added postive that we broke through the $50 barrier. I assume this is only positive if we hold there for the close.
From a TA standpoint, how positive are these developments? I guess in conjuction with this, I'd like to ask if TA theory can even be applied to a relatively new stock like RDWR.
For what it's worth, I think RDWR is facing the same thing ZOOX did for awhile. Yes, I know they are in completely different markets, but my point is, after a high flying start, ZOOX got in Wall St.'s doghouse. Once in, it takes awhile to get out. But after doing the same thing RDWR is doing now (up and down in a trading range), ZOOX broke out of its $48-$60 range and within 10 days was over $80. I think Wall St. will recognize the value of RDWR and respond accordingly.
To the shorts, if you have made money lately in RDWR, congratulations, you made a good call. But I think you may have to find a new target now.