Radian Group (NYSE:RDN)
Q: Do you think RDN will take a turn and rebound to near $3?
A: We downtrended RDN on 6/23 at $2.36 after it fell below that 50-day moving average support line. It bounced back for a few days but then when it failed to cross back above the 200-day moving average (just under $3), it started to fall back lower. Granted the recent decline in the overall market hasn’t help matters much. Good news is prior resistance was at $2 (back in early March) which should now be support. But we will keep a watch on that as if it breaks below, it could be trouble. But so far that range between $2 and $4 seems to be in play over the past few months. Anything below $2 would mean a lower low which, as you know, is a sign of a downtrend.