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Possible Bearish Inside Day Candle Pattern Detected for Redwood Trust (NYSE:RWT)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Redwood Trust (NYSE:RWT) based on the price action in the company's shares. Today's price range of $15.76 and $15.78 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 Redwood Trust may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

There is potential upside of 14.1% for shares of Redwood Trust based on a current price of $15.78 and an average consensus analyst price target of $18.00. The stock should run into initial resistance at its 50-day moving average (MA) of $15.81 and subsequent resistance at its 200-day MA of $16.22.

Redwood Trust, Inc. is an internally-managed specialty finance company focused on making credit sensitive investments in residential loans and other mortgage-related assets, as well as residential mortgage banking activities. For tax purposes, Redwood is structured as a REIT

Over the past year, Redwood Trust has traded in a range of $14.29 to $17.50 and is now at $15.78, 10% above that low. The 200-day and 50-day moving averages have moved 0.07% lower and 0.14% higher over the past week, respectively.

SmarTrend is tracking the current trend status for Redwood Trust and will alert subscribers who have RWT in their portfolio or watchlist when shares have changed trend direction.

Keywords: bearish inside day candle redwood trust

Ticker(s): RWT