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

By James Quinn

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. Today's price range of $74.39 and $74.88 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. 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.

Potential upside of 13.7% exists for Red Hat, based on a current level of $74.49 and analysts' average consensus price target of $84.69. Red Hat shares should encounter resistance at the 200-day moving average (MA) of $74.78 and support at the 50-day MA of $72.59.

Over the past year, Red Hat has traded in a range of $59.59 to $84.44 and is now at $74.49, 25% above that low. The 200-day and 50-day moving averages have moved 0.18% lower and 0.75% higher over the past week, respectively.

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.

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 inside day candle red hat

Ticker(s): RHT