Radware (RDWR) : 52 week high and Up in a down market

The past 2 trading sessions have been a down market generally.

But Radware (RDWR) has shown signs of heavy buying; in fact, its volume is above average.

Price level even hit 52 week high on yesterday’s trade.

Among the possible reasons for Radware (RDWR) move includes acquisition.

On the Ichimoku chart, RDWR has retraced back in mid August (around August 15) and has bounced off its support level identified by the 2 small Chikou Span on the left.

The rebound was followed by a quick move to $24 with the Tenkan sen cutting the Kijun sen and this took place above the kumo which suggest a strong bullish move.

The downside for RDWR is the average volume traded is only around 130k. This makes it difficult to place a huge bet on this bullish move as the stock is thinly traded and is seen as the possible risk.


Radware Ltd (RDWR) : Cross Tenkan sen

RDWR, as wtih other stocks, has rallied and move up.

Currently, it is trading inside the kumo and above its Tenkan sen.

Resistance from the Kijun sen (trend line) and the kumo.

At this moment, trading inside the kumo suggest that the trend is not established yet.

Most likely, RDWR will move up together with the general market. What I am looking for is for RDWR to breakout of the kumo with high volume.

This will give me an indication that it is ready to move up rapidly.


Radware Ltd (RDWR) : Bouncing off kumo support

Radware (RDWR) bounced off the kumo support yesterday and make it attempt to reverse its downward movement.

First target is around $21. Coincidently, the ‘small gap’ resistance at that level coincides with the Chikou Span support further back; highlighted by the 2 red circles.

I have support and stop-loss set just below $20.