The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are ready to pay a high price for the stock. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.

Graphically, the dynamic is bullish as shown by well oriented moving averages. Prices have recently broken the upper bullish trend line. This should accelerate the uptrend. However, the stock may, firstly, come back near to this trend line to bounce, secondly, towards new annual highs helped by the 20-day moving average which is coming in support.

Thus, it seems interesting to take a long position in Redwood Trust in case of a comeback near to the upper trend line, around USD 22. The first target will be the USD 23.6 resistance. Once this level crossed, prices should continue their ascension towards new annual records. A stop loss is necessary to avoid any downtrend, below the USD 21.4 short term support