Bull & Bear: Radware Ltd. (RDWR)
May 12, 2011 2:37 PM
Shares of Radware Ltd. (NASDAQ: RDWR) are trading higher on the session by 1.99%, trading at $35.32. With shares hovering on the 50-day moving average, you have to wonder where they are heading next…
Bulls: Bulls will note that Radware has been basing sideways for the past three weeks; this has forced the 20-day moving average higher. If shares continue to move higher, a bullish 20/50 cross will occur.
Bulls will also know that today's rally has put in place a bullish engulfing candle. Technically, this should lead to a further break higher, above the 50-day moving average. The 200-day moving average is also upward-trending.
A bullish trader could consider buying the June $35/38 call spread for a net debit of $1.55.
Bear: Bears will note that the 50-day moving average is currently downward-sloping, which should put pressure on shares. Bears will also note that there is a significant resistance level that exists just above the current level, at $36.00.
Bears will also note that shares are artificially elevated due to M&A chatter.
A bearish trader could consider buying the September $35/32/30 put tree for even money.
Radware Ltd. develops, manufactures and markets integrated networking solutions that allow its enterprise and carrier customers to deliver their mission critical applications between data centers and remote locations, over all critical points in the network. Radware solutions, in all situations, include both Application Delivery and Network Security solutions.
