Redback Networks, Inc. (RBAK)

[PowerPole]

What an AMAZING week RBAK just had!...

Here are the charts and news:

The 15 minute chart shows the Bollinger Bands (BB) squeezing together real tight, so a move one way or another is coming soon...The chart pattern for Friday looks like it might be a Double-Top, and the lower BB is already moving down...CMF Money Flow dropped below zero at 3pm Friday, but OBV and Accumulation look fairly strong...The CCI is upticking off it's low and may cross up through the -100 line...RSI is showing some weakness and the ADX is neutral...Stochastics show it bouncing up off of Oversold and the MACD is downticking...



The hourly chart shows the potential upside to the upper BB is almost $19.00 but with the diminishing Volume it might not make it there unless the Volume really picks up again...Most of the Indicators look fairly bullish except the MACD Histogram...There could be a retracement to the 15SMA @ $17.50 or even down to $17.00 to the SAR target...Or it could just head on up to the upper BB...



The daily chart shows the PPS way outside the upper BB...What I find interesting is Money Flow and Accumulation are not higher on this move, but the OBV is...CCI looks to be getting toppy and when it turns down this run is over...RSI, ADX, and MACD look very bullish, but Stochastics say it's approaching very Overbought...



Money flow on this daily chart is just now breaking above zero...Stochastics show it's not even at 80 yet and still upticking, and the Williams%R is still upticking but in Overbought territory...If the RSI can finally break above 70 for once, this Rally could continue for more...



This weekly chart shows a tall green candlestick for last week that's getting close to touching the upper BB...ALL of the Indicators are upticking, and the Volume last week was very good...I'd like to see the MACD fast and slow lines break up through zero next week...



This weekly chart shows the potential upside to the upper BB is $18.90 though it already touched the SAR price target...CMF, OBV, and A/D are upticking sharply...The RSI breaking above 50 is a bullish sign...CCI crossing up through the +100 line is a Buy Signal to some traders...It looks like the MACD fast line has crossed up through the slow line, another bullish sign...Aroon (25) green is upticking while red is still falling...Stochastics show it's not even close to being Overbought, while W%R shows it is...



This weeks BULLISH MOVE for RBAK was caused by four factors IMO...

1) On Monday, RBAK announced "The Carphone Warehouse Selects Redback to Help Deliver Free Broadband Services in the U.K.":

http://biz.yahoo.com/bw/061204/20061204005457.html?.v=1

2) On Wednesday, RBAK announce a MAJOR DEAL in China:

"Redback Wins Next Phase of Large Carrier Deal in China A Guangdong Telecom to Serve Four Million Broadband Users Using Redback Equipment".

http://biz.yahoo.com/bw/061206/20061206005346.html?.v=1

3) CEO Denuccio spoke at the Lehman Investors Conference Wednesday evening, and it was a VERY Bullish presentation IMO:

http://biz.yahoo.com/bw/061204/20061204006193.html?.v=1

You can listen to the webcast here:

http://cc.talkpoint.com/LEHM002/120706a_jw/?entity=Redbacks

4) Of course this Thursday article probably helped too:

http://www.lightreading.com/document.asp?doc_id=112390&WT.svl=news1_2

What will RBAK do next week?...IMO the "Trend is your Friend!"...My guess is RBAK will be higher by the closing bell next Friday...

Good Luck To ALL ;^))