ANET rises to highest close since March 4th
Arista Networks Inc. (ANET) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ANET ended Thursday at 200.57 gaining $12.24 (6.5%), slightly outperforming the S&P 500 (6.24%). Today's close at 200.57 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 196.69, the share confirmed its breakout through the prior session high after trading up to $5.97 above it intraday.
Daily Candlestick Chart (ANET as at Mar 26, 2020):
Thursday's trading range has been $16.12 (8.54%), that's slightly above the last trading month's daily average range of $14.02. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently 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 189.72 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, ANET gained 0.95% on the following trading day. Unable to break through the key technical resistance level at 201.64 (R1), the stock closed below it after spiking up to 202.66 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 185.03 in the previous session, Arista Networks found buyers again around the same price level today at 186.54.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Arista Networks. Out of 316 times, ANET closed higher 57.91% 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 60.13% with an average market move of 1.39%.