RedHat (RHT) : Breakthrough Resistance

RedHat (RHT) breakthrough its resistance at 23.34 with a small gap up in the opening today.

This is a bullish sign considering the recent bullish Tenkan sen – Kijun sen cross which I posted earlier.

However, on the Weekly Chart, there is an immediate resistance at 24.52. (Many thanks to K from InvestIdeas for highlighting this to me).

From the Weekly Chart, we can see that there is quite a few attempts to break through this level and failed. I suspect there will be a pullback in the short term.

For now, my Iron Condor is sitting on a small loss.

RedHat (RHT) : Weekly Chart Resistance at 24.52


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

S&P500 Tech

Red Hat, Inc. to Replace CIT Group Inc. in S&P 500

First congratulation to RedHat; a testament to the growing importance of its contributions to businesses.

Red Hat, Inc. will replace CIT Group Inc. in the S&P 500 after the close of trading on July 24

Are we also seeing a sign that tech stocks are replacing financial institutes on the indices. First we have CISCO (CSCO) and now RedHat (RHT).

Is this also a sign that tech stocks may be the leaders in the next rally?