Red Hat (RHT) Setting Up A Bear Trap?

Red Hat (RHT) is on this week’s StockTwits50 list.

Red Hat (RHT)
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The green price bars showing outperformance vs. SPX.

RHT has been in a trading range since March.

We can see it recently broke the lower part of the range.

This also coincides with a test of its 50DMA.

This area has the potential to turn into a bear trap. All the bears are now hoping the 50DMA doesn’t provide any support.

For Reference

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