FFIV closes within previous day's range after lackluster session
F5 Networks Inc. (FFIV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
FFIV finished the month -2.57% lower at 135.90 after gaining $0.90 (0.67%) today, slightly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $2.77 (2.03%), that's below the last trading month's daily average range of $3.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FFIV.
Two candlestick patterns are matching today's price action, the Homing Pigeon and the Takuri Line which are both known as bullish patterns.
After trading as low as 133.58 during the day, F5 Networks found support at the 200-day moving average at 133.89. The last time this happened on July 8th, FFIV gained 7.95% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to May's low at 132.06 we could see further downside momentum if potential sell stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for F5 Networks. Out of 14 times, FFIV closed higher 71.43% 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 50.00% with an average market move of 2.49%.