FFIV closes within previous day's range after lackluster session
F5 Networks Inc. (FFIV) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, FFIV ended Tuesday at 166.12 losing $0.49 (-0.29%), slightly underperforming the S&P 500 (0.05%). 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 (FFIV as at Apr 16, 2019):
Tuesday's trading range has been $1.85 (1.11%), that's below the last trading month's daily average range of $3.05. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 164.76 (S1). Prices are trading close to the key technical resistance level at 167.91 (R1). After having been unable to move above 167.47 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 167.39. The last time this happened on April 12th, FFIV lost -0.24% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 168.84 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 164.76 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for F5 Networks. Out of 56 times, FFIV closed higher 62.50% 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 60.71% with an average market move of 2.17%.