Redwood Trust, Inc.Updated RWT -- mind the gap
RWT is at the high of the day and about to break into the gap that was created when the stock dropped following the last ex-dividend date in September.
As always, this can go different ways: Maybe it keeps marching up to close the gap, maybe it drops back down into the declining regression channel that goes back to the high from the beginning of September. Maybe the most interesting outcome would be if it stayed near the current level for a few days, after which this chart could look a lot like a developing inverse head-and-shoulder pattern.
No opinion on this. Just wanted to throw it out there, in case anyone likes to trade gaps.
As always, this can go different ways: Maybe it keeps marching up to close the gap, maybe it drops back down into the declining regression channel that goes back to the high from the beginning of September. Maybe the most interesting outcome would be if it stayed near the current level for a few days, after which this chart could look a lot like a developing inverse head-and-shoulder pattern.
No opinion on this. Just wanted to throw it out there, in case anyone likes to trade gaps.
Note
The gap gor half-filled before RWT reversed to the downside. Today the stock is breaking through the low it had established just before the rally that sparked my interest. I"m glad that I didn't initiate a trade. I guess gaps don't always have to get filled.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.