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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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