F5 Networks, Inc (FFIV) : Bearish engulfment


F5 Networks (FFIV) has a bearish engulfment last Friday; a huge bearish candlestick was formed and was sold down from $100 region to $94-$95.

On the Ichimoku Daily chart, FFIV remains firmly in the bear territory.

Though, we can see from the following Ichimoku Weekly Chart, that FFIV is sitting on the Weekly kumo support.


My bet is that FFIV will try to rally to $100 given that the earnings is on April 20.

So, between now till then, it is unlikely to drop much unless news of their earnings are known beforehand.

Having said that, what is the chances that FFIV will be able to catch up and build a huge pipeline since its drastic drop in mid March.

I will look for a SHORT May $95 – $100 CALL spread position.

By iam802

Trend trading with Ichimoku