RightNow (RNOW)

Company

"RightNow is a provider of on demand customer relationship management (CRM) solutions that help consumer-centric organizations deliver great customer experiences." (company website)

RNOW
RNOW 6-month chart

Buy

RNOW
RNOW 1-year chart

In January I bought a lot of RNOW and rode it down and then back up again after the company surprised the market in February by beating Expectations. When it got to an unsustainable level, I bailed out to look in a tidy profit before the inevitable pull-back. RNOW has pulled back to the 50-day moving average, and I think it is about to start another up-cycle. In early trading today it shot up more than 5%, so I placed my order. I must have done something right — it took a total of 7 buys to acquire the 500 shares, and RNOW closed the day 6¢ above my price with solid volume.

  • Percentage price oscillator (PPO) — just below the signal line and narrowing the gap
  • Volume — stabilized at over 200K shares/day after declining volumes for almost 4 months

Based on technical analysis, MarketEdge calls RNOW a "Long" that is "oversold" and "moving against opinion."

Sell

gain Bottom line
-6.3%

After much indecision, I bailed out of this position of RNOW today. Despite the intial bounce it got after an earnings surprise, it just hasn't gone anywhere. I bought in at what I thought was the beginning of another up-cycle, but it was just a way-station on a fast elevator down. Granted, it has recovered considerably since then and is back up at the 50-day moving average, but the PPO line has been almost flat and volumes are generally below average. Last Friday it tested the downtrend line, but fell back again today.