FFIV still stuck within tight trading range
F5 Networks Inc. (FFIV) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
FFIV ended Wednesday at 136.12 gaining $0.02 (0.01%), slightly underperforming the S&P 500 (0.19%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FFIV as at Jan 15, 2020):
Wednesday's trading range has been $1.89 (1.39%), that's slightly below the last trading month's daily average range of $2.41. 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. Prices continued to consolidate within a tight trading range between 134.40 and 137.36 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on January 3rd, FFIV actually lost -1.25% on the following trading day.
Prices are trading close to the key technical support level at 134.61 (S1). After having been unable to move above 137.12 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 137.31.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 134.40 where further sell stops might get activated. With prices trading close to this year's high at 141.31, upside momentum could speed up should F5 Networks be able to break out to new highs for the year. Further selling might move prices lower should the market test December's nearby low at 132.50.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for F5 Networks. Out of 238 times, FFIV closed higher 53.36% 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 56.30% with an average market move of 1.09%.