FFIV closes within prior day's range after lackluster session
F5 Networks Inc. (FFIV) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FFIV finished the week 3.18% higher at 127.51 after losing $0.71 (-0.55%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FFIV as at Feb 14, 2020):
Friday's trading range has been $1.34 (1.05%), that's far below the last trading month's daily average range of $2.87. 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 FFIV.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on October 30, 2019, FFIV actually gained 0.22% on the following trading day.
Prices are trading close to the key technical resistance level at 128.88 (R1).
Although 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.
Buying might accelerate should prices move above the nearby swing high at 128.88 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 125.05 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for F5 Networks. Out of 71 times, FFIV closed higher 54.93% of the time on the next trading day after the market condition occurred.