Breakout Alert on $ANET – October 31, 2023
This is Scott with your Chart of the Day. I want to bring your attention back to Arista Networks ( NYSE: ANET ).
ANET ( NYSE: ANET ) is on a breakout alert as it is now bouncing up against that $200.00 level. It is a pretty physiological resistance zone here, but it is popping on higher than average volume. It looks like an earnings report, probably, and so I definitely think this is a stock that you want to keep an eye on.
Even if it does consolidate, maybe come back into the base, I think this is worth watching, just based on the positive reaction today, and that volume. You typically don’t get a nice big pop in volume and then the stock rockets down to zero. It doesn’t happen, at least not with a positive earnings reaction.
So definitely keep an eye on ANET ( NYSE: ANET ). Perhaps set an alert at the high of today. Look for a breakout above 202.00, for a potential pullback buy closer to that 50-day moving average for an early entry before an ultimate resolution to the upside. You can see that this stock has gapped up before, likely on earnings, and nice volume, and then it did consolidate for a little while.
Ultimately, it did resolve to the upside, So even if this idea doesn’t continue and trigger higher tomorrow, just because of the positive earnings reaction today, I definitely think it’s one to keep an eye on for a pullback buy opportunity.
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