By Mukhriz Mangsor, ACSI, CFTe, MSTA
Singapore (6 July 2020) – Nasdaq-listed Fortinet (FTNT) is an American multinational corporation headquartered in Sunnyvale, California. It develops and markets cybersecurity products and services, such as firewalls, anti-virus, intrusion prevention and endpoint security.
FTNT has outperformed the S&P 500 index since end-October 2019. It also performed much better during the major market correction, which started end of February 2020, as shown by the chart above.
FTNT’s fundamentals further support such strong performance. Amidst gloomy economic news, FTNT’s EPS (earnings per share) shows positive change of 30% on the last quarter, sales increased to 22% in the last quarter and has an annual ROE (return on equity) of 37%.
Chart Link: https://www.tradingview.com/x/OYkQlQN6/
FTNT price chart shows the current price action is supported by MA50 (50-Day Moving Average) with price over 26% above the MA200. The price is currently consolidating between the 149.60 – 128.30 band area and with the MA50 supporting the current price action, we consider looking to be long above the 149.60 high. Aggressive trader may wish to execute the trade on the first price bounce from the MA50.
Stop loss may be placed according to your risk tolerance level, but not going more than 7% would be ideal. Our target profit range would be around the 20% from the previous peak of 149.60 (20 May 2020) before we can expect some price correction. However, this target could change from time-to-time and you should assess it accordingly on a daily/weekly basis. Especially when the price closed below the first support line of 128.30 or below the MA50.
Overall, FTNT chart still shows a bullish bias, as the MA50 provides a good support in the past (from 6 April 2020) lifting the price to the current level.-/-
Disclaimer: Mr Mukhriz Mangsor is a Certified Financial Technician who contributes to www.halaluniverse.net on a regular basis. He focuses his attention on the tech stocks listed on Nasdaq. The views, opinions and information expressed in this article are purely Mr Mangsor’s and are not recommendations to buy the stock. They don’t necessarily represent the views of Halal Universe. Readers should seek advice from their financial advisers. Readers taking positions based on Mr Mangsor’s views are doing so at their own risk.
