Buz Investors F5 Networks Stock In my line of work, when it comes to trading, I am either bullish or bearish on a potential investment, and this comes down to either liking or not liking what I see. I like what I see when it comes to F5 Networks Inc. (NASDAQ:FFIV) stock, and this is because it contains certain attributes that I look for in a potential investment. These attributes that I seek are found on the stock chart, or are generated using one.
This method of investment analysis is known as technical analysis, and it is based on the notion that historical price and volume data can be used to discern trends and forecast futures prices. I have been refining my craft using this method for nearly two decades, and it has become the basis of my trading strategies.
The F5 Networks stock chart is a thing of beauty and I fell in love with it the first time I laid eyes on it; to say I like this investment is an understatement. My admiration for this investment is apparent on many levels.
The bullish development is supported by the moving average convergence/divergence (MACD) indicator located in the lower panel. MACD is simple trend-following momentum indicator that uses signal-line crossings to distinguish between bullish and bearish momentum. A bullish cross was generated in August 2016, which indicates that bullish momentum is now propelling FFIV stock, and as a result, the path of least resistance is geared towards higher prices.
The bullish indications do not end there, as a golden cross was generated in June 2016. A golden cross is a bullish indicator that is generated when the 50-day moving average (highlighted in blue) crosses above the slower 200-day moving average (highlighted in red). Traders use this signal to confirm a bull market is in development, and I have found it wise to tilt my strategies in the direction suggested by this indicator.
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