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
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.