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
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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