RedHat (RHT) : Bullish Cross with a Resistant

RedHat just had a bullish cross a few days back (31 August 2009).

The cross comes from a rebound off the kumo support at the same time, it is now facing immediate resistant at 23.24

The resistant level at 23.24 is significant as it is the high for the year. Coincidently, it is also the high back in August 2008 before it plunge down due to the financial crisis.

If it breaks this level convincingly, then we have a bullish play for RedHat. If it fail to cross, I see a potential play for either a Vertical Spread or an Iron Condor.

And my gut feel is that it will not break the level as you can see a high volume sell off when it reach the high in July 2009.

2009Sep-Red Hat Inc-800x600

By iam802

Trend trading with Ichimoku

1 comment

Comments are closed.