Take a sip of this Cup on $FTNT – March 7, 2024
This is Scott with your Chart of the Day. I want to take a look at Fortinet ( NASDAQ: FTNT ).
Fortinet ( NASDAQ: FTNT ) is still working on a massive rebound off the low from here in November 2023. We see this huge gap down, likely due to earnings in Q3 of 2023. It gapped down even more with another bad earnings report. But recently it has actually had some pretty positive price action off of that low.
If I zoom out here a little bit I can see just a tiny little cup pattern here. I guess it’s not that tiny, it’s actually quite deep and large. And then I also see a little bit of a handle here. We have a clear level of resistance, was resistance, was resistance, now support, and then we have another little handle here. A bit of a cup and then a handle, and we’re just about to fill this gap to the upside.
I definitely want to see what happens if Fortinet ( NASDAQ: FTNT ) can get above that $74.00 level, right there, 73.90 to be a little more exact, and see if this can break out through that pivot and potentiality test the old highs up here around 81.00. I definitely think that the 73.90-74.00 zone is going to be a battle area here for Fortinet ( NASDAQ: FTNT ). And I think that’s going to be worth watching for a potential entry on a breakout pivot.
Now granted, it is a bit extended above the moving averages here. I wouldn’t be surprised if it takes a few tries, a few runs at 73.90. But if that’s the case and this pulls back, then you have, at least, an entry close to moving averages with a little more confidence at a lower-risk stop-loss. That is one view that I have on Fortinet ( NASDAQ: FTNT ). I definitely think this has an opportunity to keep going higher up until its next earnings report in May, as long as the market can cooperate.
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