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

By James Quinn

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. Yesterday's price range of $16.56 and $16.65 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 Redwood Trust may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

In the past 52 weeks, Redwood Trust share prices have been bracketed by a low of $14.29 and a high of $17.50 and closed yesterday at $16.63, 16% above that low price. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has remained constant.

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

Redwood Trust has overhead space with shares priced $16.63, or 7.6% below the average consensus analyst price target of $18.00. Redwood Trust shares have support at the 50-day moving average (MA) of $16.23 and additional support at the 200-day MA of $16.07.

SmarTrend recommended that subscribers consider buying shares of Redwood Trust on January 17th, 2019 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $16.05. Since that recommendation, shares of Redwood Trust have risen 3.9%. We continue to monitor RWT for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle redwood trust

Ticker(s): RWT