FFIV closes above its opening price after recovering from early selling pressure
F5 Networks Inc. (FFIV) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FFIV finished the week -1.02% lower at 137.31 after edging higher $0.17 (0.12%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $2.03 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FFIV as at May 22, 2020):
Friday's trading range has been $2.66 (1.94%), that's below the last trading month's daily average range of $4.40. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for FFIV.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the In-Neck Pattern. The last time a Takuri Line showed up on March 18th, FFIV gained 8.59% on the following trading day.
After trading down to 134.93 earlier during the day, the stock bounced off the key technical support level at 135.06 (S1). The failure to close below the support could increase that levels importance as support going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 142.27 where further buy stops could get triggered. As prices are trading close to May's low at 132.06, downside momentum might accelerate should F5 Networks mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for F5 Networks. Out of 398 times, FFIV closed higher 60.30% 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 60.05% with an average market move of 1.28%.