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Possible Bearish Inside Day Candle Pattern Detected for Red Hat Inc (NYSE:RHT)

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Red Hat Inc (NYSE:RHT) based on the price action in the company's shares. Yesterday's price range of $166.71 and $168.73 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Red Hat Inc may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Red Hat, Inc. develops and provides open source software and services, including the Red Hat Linux operating system. The Company's web site offers information and news about open source software and provides an online community of open source software users and developers.

Over the past year, Red Hat Inc has traded in a range of $68.54 to $169.20 and closed yesterday at $168.60, 146% above that low. Over the past week, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has advanced 0.8%.

Red Hat Inc (NYSE:RHT) defies analysts with a current price ($168.60) 19.2% above its average consensus price target of $136.21. Red Hat Inc shares have support at the 200-day moving average (MA) of $74.78 and additional support at the 50-day MA of $72.59.

SmarTrend recommended that subscribers consider buying shares of Red Hat Inc on February 14th, 2018 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $132.64. Since that recommendation, shares of Red Hat Inc have risen 27.2%. We continue to monitor RHT for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle red hat inc

Ticker(s): RHT