Red Hat Looks Ready to Move

Technical coordination on multiple time frames often generates the most reliable and profitable trades. The weekly and daily charts of the open-source software and cloud computing services company Red Hat (RHT) are positively synchronized and suggest a move to the upside.

A series of five-month cycle highs and cycle lows over the last year can be seen on the weekly chart. The current cycle low, like the previous one in November 2012, is at the 50% retracement level of the 2011 low and 2012 high, and the first two candles in April formed a two-day bullish reversal or tweezer pattern, which further reinforces the cycle support thesis. Stochastics are making a bullish crossover from an oversold condition, relative strength is crossing above its centerline, and accumulation/distribution bounced off its 21-period moving average, indicating a continuation of positive money flow....217 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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