FFIV breaks back above 50-day moving average
F5 Networks Inc. (FFIV) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
FFIV ended the month -3.75% lower at 139.48 after gaining $2.07 (1.51%) today, slightly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FFIV as at Jun 30, 2020):
Tuesday's trading range has been $2.39 (1.73%), that's below the last trading month's daily average range of $4.04. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 lower in the previous session, F5 Networks managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on April 3rd, FFIV gained 5.02% on the following trading day.
The stock managed to close back above the 50-day moving average at 139.10. Prices are trading close to the key technical resistance level at 141.69 (R1).
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 141.69 where further buy stops might get triggered. Further selling could move prices lower should the market test May's close-by low at 132.06.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for F5 Networks. Out of 76 times, FFIV closed higher 57.89% 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 61.84% with an average market move of 1.63%.