New Relic (NEWR) has not been trading all that long but if it has learned to respond to supply and demand it should be easy to handicap its next move.
In this daily chart of NEWR, below, we want to follow our usual routine of starting with the price action and moving averages and then drilling down to the indicators. NEWR made its 52-week high on Sept. 28 and prices have closed below the low of that day. From personal experience, I have found that this quick reversal pattern (a close below the low of the high day) is pretty reliable. NEWR is above the rising 50-day average line but it is pulling down for a likely test of the line. The last test in late June was successful but the next one may not be a buying opportunity.
The 200-day line is flattening after a decline. NEWR bottomed in February through May but the On-Balance-Volume (OBV) in that time period was basically flat -- neither buyers nor sellers were aggressive. From early May prices turned up and the OBV line started to advance and support the rally. In the bottom panel is the 12-day momentum study and momentum has been weakening since June.
This weekly chart of NEWR, below, gives us a little more to analyze -- prices are above the flat 40-week moving average line. The weekly OBV line is pointed up on this timeframe. Momentum is slowing on this timeframe, too, despite the continued price gains.
If you are long NEWR and have a gain I would raise your sell stop to a close below $35.