Reviewing Red Hat Inc. (RHT) in late June, I wrote that "Spillover or carryover selling from last week is likely. A break of the rising 200-day line is also likely. Some buying is also likely to develop around $130, the top end of the $130-$120 support area. A close below $125, the mid-point of the support zone, could precipitate further selling."
Looking back of the past few months we can see that RHT found support at $130 after breaking the 200-day line. Prices have recovered the past two months, so let's see if the bounce can continue for this "Cloud King" discussed by Jim Cramer on Real Money.
In the weekly bar chart of RHT, below, we can see that prices are above the cresting 40-week moving average line. The weekly OBV line has been stalled the past three months and the MACD oscillator is close to crossing below the zero line for a sell signal.
Bottom-line strategy: The charts and indicators of RHT are mixed but a trade above $152.44 will be bullish. Aggressive traders could go long risking to $135. Look for a rally to the $170 area.