ANET closes within prior day's range after lackluster session
Arista Networks Inc. (ANET) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ANET ended the month -10.04% lower at 210.03 after gaining $3.12 (1.51%) today, slightly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ANET as at Jun 30, 2020):
Tuesday's trading range has been $5.21 (2.51%), that's below the last trading month's daily average range of $6.86. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ANET. Prices continued to consolidate within a tight trading range between 204.72 and 212.74 where it has been caught now for the last three trading days.
After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on April 14th, ANET actually lost -1.50% on the following trading day.
Prices are trading close to the key technical resistance level at 214.04 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 212.74 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 204.72 where further sell stops could get triggered. Further selling might move prices lower should the market test May's nearby low at 201.25.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Arista Networks. Out of 468 times, ANET closed higher 56.84% 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 59.40% with an average market move of 0.94%.