One of the important themes we have been seeing throughout this recent recovery in the stock market is how corporations have been investing to bring their technology up to speed to improve productivity and profits. Red Hat has been right in the middle of that discussion, and I think the stock is going to bounce up and off of its most recent pullback (small as it’s been) and continue climbing until it reaches the high of $52.50 it saw three different times (October, November and December) during 2011.
I wouldn’t be surprised to see a little resistance show up at $50, but it shouldn’t take too much to push up and through that.
Trade Details:
- The Ticker: RHT
- The Trade: Buy at $47.95
- Target Price: $52.50
- Trade Opened: February 8, 2012
Chart courtesy Finviz. Click to open in larger window.
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