Don't Ignore This Chart!

Fortinet In Strong Industry, Tests Gap And Price Support

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Fortinet (FTNT) is down roughly 5% from its recent price high as money rotates within the software industry ($DJUSSW).  It's up close to 30% year-to-date, however, so a little profit taking in the short-term is likely providing an opportunity.  FTNT looks to be approaching and testing a key price and gap support level that's been holding for the past 6-7 weeks.  RSI is in the mid-40s as FTNT has been underperforming the software industry as a whole during its consolidation period.  Here's the chart:


Note that software ($DJUSSW) has been a major outperformer vs. the S&P 500 in 2017 so it wouldn't surprise me at all to see FTNT gather itself at price support and begin to rally to challenge its earlier May high just above 41.

Happy trading!

Tom

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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