Traders Take Note: Red Hat Inc (NYSE:RHT) Stock Drops, Weakness in Technical Momentum
(RHT Price of Stock at Publication: $120.1)
Take Note: Red Hat Inc (NYSE:RHT) has hit some technical weakness in its momentum, and while it has not broken down all the way through support -- watch the key levels that we discuss below and further, watch the stochastics and technical oscillators for any kind of momentum gaps.
The company has a two bull momentum rating which indicates weakness -- but not a full scale breakdown. There can be a contrarian urge to enter a new long position as the stock drops, but as of this moment, the stock price is moving lower and may yet weaken further. If a reversal becomes apparent, waiting for that strength in the technicals may be more prudent than jumping in as the stock drops.
RHT is up +8.3% over the last three months and up +25.4% over the last six months. The stock price is up +72.3% over the last year. The current stock price is $120.1.
RHT Stock Returns
Technicals | Support: 81.31 | Resistance: 129.44
Golden Cross Alert: The 50 day MA is now above the 200 day moving average.
As we noted above -- the back of the envelope rule here is that when shorter-term moving averages move above the longer-term ones, momentum is building. We have that right now.
Swing Death Cross Alert: The short-term 10 day moving average is now below the 50 day moving average.
Recall that when we see the shortest-term moving average (10-day in this case) fall below any other moving average (50-day in this case), it indicates weakening momentum.
Red Hat Inc has a two bull (low rated) technical rating because it's trading below both its 10 day and its 50 day simple moving averages. We do note that the stock is trading above the long-term 200 day moving average.
We now turn to the actual numbers driving this rating:
Red Hat Inc (NYSE:RHT) rating statistics:
10-day moving average: $123.82
50-day moving average: $123.87
200-day moving average: $103.59
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