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.
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