FFIV finds support at 20-day moving average
F5 Networks Inc. (FFIV) Technical Analysis Report for Mar 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FFIV finished the month -11.1% lower at 106.63 after losing $3.18 (-2.9%) today on low volume, strongly underperforming the S&P 500 (-1.6%). Trading $2.15 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Monday's low at 107.63, the stock confirmed its breakout through the previous session low after trading up to $1.46 below it intraday.
Daily Candlestick Chart (FFIV as at Mar 31, 2020):
Tuesday's trading range has been $5.30 (4.85%), that's far below the last trading month's daily average range of $8.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FFIV.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on March 11th, FFIV actually lost -8.78% on the following trading day.
After trading as low as 106.17 during the day, F5 Networks found support at the 20-day moving average at 106.40.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for F5 Networks. Out of 74 times, FFIV closed higher 58.11% 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 58.11% with an average market move of 1.58%.