Technical Insights for FORTINET INC (NASDAQ:FTNT): Is a Breakout Imminent?

FORTINET INC (NASDAQ:FTNT) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:FTNT.

In-Depth Technical Analysis of NASDAQ:FTNT

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, FTNT scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, FTNT is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• FTNT is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so FTNT is lagging the market slightly.
• In the last month FTNT has a been trading in the 61.00 - 73.50 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that FTNT is one of the better performing stocks in the market, outperforming 85% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• FTNT is part of the Software industry. There are 279 other stocks in this industry, FTNT did better than 69% of them.

Check the latest full technical report of FTNT for a complete technical analysis.

How do we evaluate the setup for NASDAQ:FTNT?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:FTNT currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, FTNT also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 70.36, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FTNT in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:FTNT

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade NASDAQ:FTNT and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.