Internet content player Rediff.com (REDF) has broken out violently to the upside during Tuesday’s trading session. The shares spiked 22 percent to a 52wkh of $14.72 after the company introduced a new service, named Rediff Deal Ho Jaye!, offering consumers an opportunity to discover new local services at discounted prices.
The Mumbai, India – based company said that the service “enables consumers to learn about exciting things to do in their cities, to try out services that they haven’t tried before at significant discounts and to stay informed of new deals.” Rediff added that “merchants will now have the ability to take advantage of Rediff.com’s reach to generate business through new customers by offering special discounts and promotions on Rediff Deal Ho Jaye.” In other words, Rediff is doing the Indian adaptation of Groupon.
Rediff shares are up on unusually high trading volume. Just over halfway through the trading day, more than 6 million shares have already changed hands, compared with a 3-month daily average of just 994,000 shares. June and July 15 calls are also quite active, suggesting larger price movement.
REDF is currently trading above its 50-day moving average of $7.32 and above its 200-day moving average of $4.92. Look for these parameters to climb to confirm the security’s upward momentum.
REDF gained $2.27, or 19.93%, to $13.72 at 2:23 pm E.T. in Nasdaq composite trading. The stock has now jumped a massive 281% over the last 52-weeks.