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

By Shiri Gupta

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. Today's price range of $103.86 and $104.83 is within yesterday'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.

Red Hat Inc has overhead space with shares priced $104.17, or 2.7% below the average consensus analyst price target of $107.04. The stock should discover initial support at its 200-day moving average (MA) of $74.78 and subsequent support at its 50-day MA of $72.59.

In the past 52 weeks, shares of Red Hat Inc have traded between a low of $68.54 and a high of $105.21 and are now at $104.17, which is 52% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has advanced 0.8%.

SmarTrend recommended that subscribers consider buying shares of Red Hat Inc on January 25th, 2017 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $76.50. Since that recommendation, shares of Red Hat Inc have risen 37.1%. We continue to monitor RHT for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle red hat inc

Ticker(s): RHT