FFIV breaks above 20-day moving average for the first time since February 25th
F5 Networks Inc. (FFIV) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FFIV finished Thursday at 114.05 surging $8.76 (8.32%) on low volume, strongly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over a year. The last time we've seen such an unusually strong single-day gain on March 13th, FFIV actually lost -9.50% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 108.30, the share confirmed its breakout through the prior session high after trading up to $7.05 above it intraday.
Daily Candlestick Chart (FFIV as at Mar 26, 2020):
Thursday's trading range has been $11.07 (10.52%), that's far above the last trading month's daily average range of $8.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for FFIV.
One bullish candlestick pattern matches today's price action, the White Candle.
F5 Networks managed to close above the 20-day moving average at 107.84 for the first time since February 25th. Unable to break through the key technical resistance level at 114.25 (R1), the market closed below it after spiking up to 115.35 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 122.56, upside momentum could speed up should FFIV mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for F5 Networks. Out of 179 times, FFIV closed higher 50.84% 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 59.22% with an average market move of 0.94%.