Red Hat (RHT) was reviewed back in late October where I looked for "a big upside price target of $227 but old highs around $150 need to be reached first." (Red Hat is also one of the "Cloud Kings" on Jim Cramer's mind.) Now that the $150 target has been reached and exceeded a fresh look at the charts is in order.
In this daily bar chart of RHT, below, we can see an impressive rally the past twelve months with RHT starting below $90 and now above $150. Prices are above the rising 50-day moving average line and the rising 200-day line. The daily On-Balance-Volume (OBV) line has been rising the past year signaling more aggressive buying and confirming the advance. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for much of the year and is currently narrowing towards a fresh go long signal.
In this weekly bar chart of RHT, below, we can see a long base formation from the middle of 2015 to early 2017 before prices broke out on the upside and more than doubled in price. Prices are firmly above the rising 40-week moving average line. The weekly OBV line shows a three-year uptrend which tells us that a lot of accumulation has been seen and buyers have been more aggressive for a long time. The MACD oscillator on this longer time frame is well above the zero line and narrowed towards a possible crossover. The lines have not yet crossed and they might not cross if RHT continues higher.
In this Point and Figure chart of RHT, below, we can see a long uptrend and a nearby price target that measures to the highs.
Bottom line -- RHT is pointed higher. Traders could go long or add to longs at current levels or on strength above $160. Risk below $143. $175 and then $200 and $227 are my price targets.