Red Hat ( RHT) is a provider of open source software solutions, using a community-powered approach to develop and offer reliable and high-performing operating system, middleware, virtualization, storage and cloud technologies. This stock closed up 3.9% at $46.37 in Wednesday's trading session.
Wednesday's Volume: 5.46 million
Three-Month Average Volume: 1.85 million
Volume % Change: 225%
From a technical perspective, RHT gapped higher here back above its 50-day moving average of $46.31 with above-average volume. This move is quickly pushing shares of RHT within range of triggering a big breakout trade. That trade will hit if RHT manages to take out Wednesday's high of $46.58 to its gap down day high from September at $48, and then once it clears its 200-day moving average of $49.30 with high volume.Traders should now look for long-biased trades in RHT as long as it's trending above Wednesday's low of $45.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.85 million shares. If that breakout hits soon, then RHT will set up to re-fill some of its previous gap down zone from September that started near $54. 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.
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