FTNT closes within previous day's range
Fortinet Inc. (FTNT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FTNT ended Wednesday at 116.93 losing $1.27 (-1.07%), underperforming the S&P 500 (-0.46%). Trading $1.39 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 10th, FTNT lost -1.36% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FTNT as at Sep 16, 2020):
Wednesday's trading range has been $4.05 (3.39%), that's slightly below the last trading month's daily average range of $4.68. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FTNT. Prices continued to consolidate within a tight trading range between 113.52 and 120.81 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The share found buyers again today around 116.76 for the third trading day in a row after having found demand at 116.92 in the prior session and at 116.13 two days ago.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the nearby swing low at 113.52 where further sell stops could get activated. As prices are trading close to September's low at 112.68, downside momentum might speed up should the stock mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Fortinet. Out of 435 times, FTNT closed higher 58.85% 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 61.38% with an average market move of 1.74%.