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

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Red Hat (NYSE:RHT) based on the price action in the company's shares. Yesterday's price range of $70.82 and $72.14 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. Traders and investors interested in shares of Red Hat may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

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 has overhead space with shares priced $71.48, or 15.6% below the average consensus analyst price target of $84.69. Red Hat shares should first meet resistance at the 50-day moving average (MA) of $72.59 and find additional resistance at the 200-day MA of $74.78.

In the past 52 weeks, Red Hat share prices have been bracketed by a low of $59.59 and a high of $84.44 and closed yesterday at $71.48, 20% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.8% while the 200-day MA has slid 0.2%.

SmarTrend is monitoring the recent change of momentum in Red Hat. Please refer to our Company Overview for the results of our proprietary technical indicators that have been scanning shares of Red Hat in search of a potential trend change.

Keywords: bullish am inside day candle red hat

Ticker(s): RHT