Chart of the Week: Fortinet
Hey good morning everyone. Happy Wednesday. It’s time for our chart of the week, and we’re gonna be focusing on cybersecurity name today Fortinet; FTNT is the symbol.
Let’s take a look at this chart. It’s had a really nice run here over the past couple of weeks and we think this thing is gonna continue.
One thing that’s pretty notable here obviously is this huge move down from the highs back in February – hit an all-time high of about $114. Came all the way down to about $82, about a 30% move down. And it most recently has rallied back to about the $102 level, which is about near the late March highs of about $101 – 102. So we could stall out a little bit over here, but I tend to think that a pullback is gonna be one that you want to buy.
Look at the good relative strength here. Williams %R is overbought. We have a buy signal here on the MACD as well on the bottom.
Yes, we’ve had a bit lower turnover here, but it’s just mostly to retrace some of this movement back over here. Call it short covering calls – call it what you want. There’s some buyers coming in here on Fortinet.
What we’d really like to see if we’re going to expect some higher prices – maybe a little bit of sideways movement. Back down over here, up here, back up here – a little sideways movement. And then maybe after several days – maybe a couple of weeks – a move back up above here that shows a little bit of conviction from the buyers. Makes a run back up towards the $108 – 110 level. Eventually the stock makes a run back to the $114 level. That would be a nice 12% move up if you’re willing to be patient and wait through some of this sideways movement over here.
What we would not like is if we come down and fill this gap down here at about $94 and change and then reverse back down. So that would be bad for the bulls. But as I’m looking at the chart right now, it doesn’t appear that’s gonna be the case.
So, take a look at Fortinet over here. It’s not one of your hot, fast movers. It did a stock split a couple of years ago to get more shares out in the markets, much like its competitor Palo Alto did.
Take a look at Fortinet. This is a good one. I think we’ve got some upside action down the road here. Thanks so much for watching everyone.
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