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RightNow Technologies (RNOW) : A Daily Chart Review

Yesterday, I touch on RNOW’s move into securing government contracts and how its deal with the DoD lay the foundation for it to make in-roads to secure contracts of such nature.

Here’s a quick overview of RNOW on the daily chart:

  1. We can see that the kumo is flattening out. A suggestion that that RNOW has been trading in a ‘fixed’ range and at this moment, there is no catalyst for it to fly.
  2. Chikou Span may break through the kumo, and when it does break through, it may signal a bullish trend.
  3. However, we need to take a look at its low trading volume. This represent some form of risk. With such volume, any price movement without significant increase in volume could mean that RNOW may be moving up with the broader market in a rally.
  4. What I would like to see is more contract wins and since this is the earnings season, we should take a look at how its cashflow and revenue growth is standing.

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Thinking out loud. Are there any direct competitors for RNOW? Who are they?

Salesforce.com (CRM) is in the same ‘segment’, however, I believe  both offers solutions for different needs.