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From a technical perspective, RDEN bounced modestly higher here with heavy upside volume. This stock recently gapped down sharply from $40 to its new 52-week low at $30.37 with monster downside volume. That move has now pushed shares of RDEN into extremely oversold territory, since its current relative strength index reading is 16.20. Oversold can always get move oversold, but it's also an area where a stock can experience a powerful bounce higher from.
Traders should now look for long-biased trades in RDEN as long as it's trending above Friday's low of $33.08 or above $32 and then once it sustains a move or close above its gap down day high of $34 with volume that's near or above 219,258 shares. If we get that move soon, then RDEN will set up to re-fill its previous gap down zone that started at $40. Some possible upside targets for RDEN if it gets into that gap with volume are $36 to $38.
To see more stocks rising on unusual volume, check out the
Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.