Shares of Redwire Corporation (NYSE:RDW) continue to move higher on Wednesday. They have gained about 200% in just a month. Traders don't know when this rally will end, and those who own the shares are analyzing possible exit strategies. This is why Redwire is the Stock of the Day.
‘Sell at former tops' is an old saying on Wall Street.
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Many times, when a stock reaches the same level as a former peak, it encounters resistance. Sometimes, after encountering resistance, stocks roll over and head lower.
As you can see in the chart below, Redwire’s all-time high was $26.66. If the shares reach this level, they may hit resistance.
