Looks like it will be shoot first and ask questions later on this dog. I suspect stop loss orders were being kicked in and the shorts are piling on despite the lack of news.
Closing at $43.75 which was resistance for the last 11 trading sessions is a positive. Follow through tomorrow should confirm a short term reversal in RHT shares.
Apparently not today. Now that most retail investors have sold at the bottom, the professionals can swoop in and pick up the spoils, and drive this beaten down stock higher. Amazing how it happens over and over.
Have to wait for all the knuckleheads selling at the bottom of the range to get out of the way. Once they are done, PANW can move higher.
I'm sure some knuckleheads will try selling again tomorrow just like they did yesterday, but it's too late to sell now. Momentum starting to build to the upside, finally!
The stock can go much higher now that the re-test of the recent low has been successful. Institutions will now bid the shares up now that most of the sellers have sold and the shorts have to cover.
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.
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.
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.
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.
Don't sell until it gets above $45. Today is just the start of the reversal. Once the MACD goes positive, the move up should accelerate.
Don't be scared by the panic selling. Stop losses are getting smashed. Stock is too easy to manipulate due to low volume. This should retest the lows but will scream back to $50 once the smoke clears and the weak hands and shorts are all out
The immutable law of trading indicates that it will get there. It broke to a 3 month low today and shorts will pile in to trigger stop losses set by short term traders and weak hands. Wait until under $43 to load up on the long side.
Chart shows a nice bottom formation in the low $40s as predicted. MACD starting to turn positive. Looks like sellers are exhausted. Overdone in the short term. Time to cover and go long. $45 looks like first major resistance.