ANET pushes through Wednesday's high
Arista Networks Inc. (ANET) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ANET ended Thursday at 237.62 gaining $3.16 (1.35%) on high volume, strongly outperforming the S&P 500 (-0.16%) ahead of today's earnings report. Closing above Wednesday's high at 235.18, Arista Networks confirmed its breakout through the previous session high after trading up to $6.17 above it intraday.
Daily Candlestick Chart (ANET as at Feb 13, 2020):
ANET is set to report earnings after today's market close. For the upcoming report, analysts expect the company to have earned $2.08 per share. The company's last earnings report was released on Oct. 31, 2019, when Arista Networks Inc. reported earnings of $2.69 per share topping market expectations by 9.8%.
Thursday's trading range has been $8.95 (3.85%), that's far above the last trading month's daily average range of $5.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ANET.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 234.63 (now S1), which is likely to act as support going forward. The last time this happened on January 8th, ANET actually lost -0.09% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 241.89, upside momentum might speed up should the share be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Arista Networks. Out of 22 times, ANET closed higher 63.64% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.64% with an average market move of 2.63%.