Another under-$10 name that's quickly moving within range of triggering a near-term breakout trade is Rediff.com (REDF), which is engaged in the business of providing online internet based services, focusing on India and the global Indian community. This stock has been pressured by the sellers during the last six months, with shares off by 33%.
If you take a look at the chart for Rediff.com, you'll notice that this stock has started to form a bottoming pattern during the last two months between $2.58, $2.63 and $2.68 a share. Shares of REDF are starting to spike off those support levels and it's quickly moving within range of triggering a big breakout trade above a key downtrend line. That downtrend line has acted as resistance for REDF for about three months.
Market players should now look for long-biased trades in REDF as long as it's trending above those $2.63 to $2.58, and then once it breaks out above its 50-day at $2.81 a share and then above more overhead resistance levels at $3.01 to its 200-day at $3.08 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 69,000 shares. If that breakout triggers, then REDF will set up to re-test or possibly take out its next major overhead resistance levels at $3.19 to $3.39 a share. Any high-volume move above $3.39 will then put $3.82 to $4.45 into range for shares of REDF.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV