Red Hat, Inc. (NYSE:RHT)’s 14-day RSI reading has moved the stock into overbought range, reaching 86.29 after yesterday’s close. Investors should be wary of taking positions as this might indicate the stock is due to reverse course. The RSI takes the closing prices of a given stock over a 14-day period (typically) and calculates a ratio of the number of higher close days to the number of lower close days. With Red Hat, Inc. (NYSE:RHT) shares passing the 70 level, the stock is now considered to be in overbought territory and ripe for a potential pullback.
Red Hat, Inc. (NYSE:RHT) shares have traded 5.74% for the week and are 69.80% for the year. At the time of writing, the stock is trading at $118.35, a change of 1.09% from the previous close. In terms of volatility, the average daily high/low percentage range stands at 1.74% for the week and 1.64% for the month.
So, most importantly, where are shares headed from here? In order to get a sense of Wall Street sentiment, we can look to brokerage analyst estimates. On a one to five ratings scale where 1.0 indicates a Strong Buy, 2.0 indicates a Buy, 3.0 a Hold, 4.0 a Sell and 5.0 a Stong Sell. Red Hat, Inc. currently has an average analyst recommendation of 2.10 according to analysts. This is the average number based on the total brokerage firms taken into consideration by Beta Systems Research. The same analysts have a future one-year price target of $121.50 on the shares.
In addition to sell-side rational, we can also take a look at some technical indicators. The stock is currently 12.25% away from its 50-day simple moving average and 30.75% away from the 200 day average. Based on a recent trade, the shares are 0.32% away from the 52-week high and 72.67% from the 52-week low.