Riverbed on the radar

Posted May 15th 2009 4:40PM by Todd Harrison
Filed under: Technical Analysis, Stocks to Buy, Technology, NASDAQ

This post was written by Minyanville Contributor Smita Sadana.

A stock that I am keenly watching today is Riverbed Technology (NASDAQ: RVBD), which is up in this down market. Minyans might remember that we had concluded a successful long trade in this stock. For more please see my note on April 24th.

Here are some thoughts on the new technical picture:

Notice the bullish flag formation.
The stock has been quite resilient to the recent decline in the market indexes.
Check out volume on up days versus down days, which is adding some credence to my bullish take. (Even though today is a relatively light volume day.)
The short interest as a percentage of float has diminished somewhat from the time I last featured it, but still remains quite high. It was at 17.89% at the beginning of May as opposed to 21% in the beginning of April.
In this jittery market environment, one is always unsure about taking breakouts but the technical picture would certainly be validated only upon a high volume breakout from here. And stops can be set just under $17, which was the closing low after the earnings reaction.

Tags: nasdaq, rvbd, technical analysis, technology