FFIV finds buyers again around 121.64
F5 Networks Inc. (FFIV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FFIV finished Wednesday at 123.53 gaining $2.04 (1.68%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 123.07, the market confirmed its breakout through the previous session high after trading up to $1.30 above it intraday.
Daily Candlestick Chart (FFIV as at Sep 16, 2020):
Wednesday's trading range has been $2.73 (2.24%), that's slightly below the last trading month's daily average range of $2.92. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FFIV.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 124.37 (R1), the share closed below it after spiking up to 124.37 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 121.35 in the prior session, F5 Networks found buyers again around the same price level today at 121.64. The last time this happened on September 9th, FFIV actually lost -2.64% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 124.37 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for F5 Networks. Out of 385 times, FFIV closed lower 56.10% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.91% with an average market move of 0.01%.