Redback Networks (RBAK)

Company

"Redback Networks Inc., a leading provider of next-generation broadband networking equipment, enables carriers and service providers to build third-generation Smart Broadband Networks that can deliver simplified, personalized, portable subscriber services to consumers and businesses. The company's carrier-class, consumer-scale SmartEdge Router and Service Gateway platforms for Consumer IP combine subscriber management systems and edge routing and, in conjunction with the NetOp™ Element and Policy Manager platform, provide a powerful, flexible infrastructure for managing both subscribers and value-added services." (company website)

Buy

9-May-05. I closed my short position today and took a long position. In two recent cases (CTRX and NEOL) I closed short positions to see them spurt upward in the following days. It may be wishful thinking that RBAK will do the same.

I'm encouraged by a sharp increase in price momentum (PPO) and a two-week rise in relative strength (RSI). I would feel better if money flow (CMF) and buying pressure (+DI) were more positive. I may have jumped the gun.

Sell

11-May-05. I decided this morning that the spurt that caused me to cover my short and take out this long position was nothing more than a false alarm. I decided this morning to bail before it got any worse. Right now, I can't tell which direction RBAK is going: up, down, or sidewise.