FTNT gaps up on earnings

22 thg 4, 2015

FTNT only has data going back to 2009 and has been in consolidation for the majority of that time. However, it has a good volume of stock traded on a daily basis and is nicely priced at below $50 (making it cheaper to trade than more expensive stocks).

Since breaking out above the 2012 pivot high ($28.82) in December 2014 price did retrace to retest this zone (and the 50sma) in January 2015. A good, linear trend is still to develop. The trend looks to be in the early stages - the 50sma is still being used for support and I would want to see price move away from this before considering a buy here.

Yesterday's gap up was most likely due to the earnings announcement. I would not consider this a good near term opportunity as the bar was a doji/spinning top so neither bullish or bearish. A bullish bar may have persuaded me otherwise, but the likelihood of momentum remaining to the upside in the near term does not present a good enough probability for me.

FTNT is one to look at, again, some time in the future.