Technical Breakout: F5 Networks, Inc.
Boston, Aug 17, 2001 (MidnightTrader via COMTEX) -- In our last technical
breakout on June 13 on F5 Networks (FFIV) we said we were encouraged by the
break above $14.05 posted on Tuesday June 12. We added, however, that the stock
needed to break above $15 to rally and confirm the upward trendline. On the
other hand, we also said "the only concern is a gap left in the chart between
$12 and $12.50." Well, F5 networks did indeed break $15 and managed to rise all
the was to $19.20, but after reaching that level the stock began retreating, and
on August 10 the stock finally closed the gap mentioned above. In the process of
the latest declines the stock built a downward trendline and is now trading
below the 50-day MA. However, with the gap finally covered the stock could once
again begin the process for a reversal. Since closing the gap the stock has
risen nicely and the money flow chart has followed suit. However, until the
stock breaks above $15 we would remain very cautious about a possible recovery,
since the bias remains slightly bearish. F5 has initial resistance at $14 and
support below $12. Stock is down on light Island trading. |
