FFIV closes within previous day's range
F5 Networks (FFIV) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
FFIV finished the week -8.17% lower at 167.73 after gaining $3.02 (1.83%) today, slightly outperforming the S&P 500 (1.42%). Trading up to $1.36 lower after the open, F5 Networks managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FFIV as at Oct 12, 2018):
Friday's trading range has been $3.64 (2.17%), that's slightly below the last trading month's daily average range of $3.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for FFIV.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The market managed to break above the 200-day moving average at 164.98 today. When this moving average was crossed above the last time on November 29, 2017, FFIV gained 3.34% on the following trading day. Prices are trading close to the key technical resistance level at 170.58 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 187.14.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 164.36 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for F5 Networks. Out of 55 times, FFIV closed higher 58.18% 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 61.82% with an average market move of 1.79%.