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.


F5 Networks (FFIV) : Watch for a possible downwards movement


FFIV has a counter rally since its gap down on Jan 20.

The counter rally reach a height of $129 before it reverses. It did not break through the kumo resistance back then and the bearish view for FFIV remains.

Since the reversal on Feb 15, FFIV have not reach the $129 again. It reach a support of $111.76 and the bounce up did not break through the kumo again.

This time round, we see a doji formed on March 2. The price tried to go to $116 but end up closing at $112 closer to the day’s low; suggesting the lack of strength here to push up.

But, the biggest hint of a muted price movement for FFIV comes the following day, March 3

As I recall, the overall index was strong on that day. But, here we see FFIV exhibiting a bearish outlook on its chart.

My bet, is that FFIV is lacking news to help push it upwards in the short term.

I expect FFIV to break support at $111 and test the $100 region again with the next 2 months.

Target price for downward movement is $90


F5 Networks (FFIV) : Ichimoku Chart Review, 21 Jan 2010

F5 Networks (FFIV) has a bad day closing on Friday.

Despite opening up on a fairly high price at $111.72, it fails to sustain its counter-bear rally and start losing ground from around 10:30 onwards.

The price went south after lunch and settled at a closing price of 109.97

Immediate resistance is at 2 levels.

1. From the Chikou Span at $111.60

2. From the massive kumo above at around $116 region

On the Ichimoku Weekly Chart, it has a support at $103.60

A fall below the support will give us a target of around $91

With its massive drop this week, will we see more selling as more investors or traders start acknowledging the reverse in trend?

Or will we see more folks coming into buy as it is a great buying opportunity at this much lower price? For those who are buying, do they believe that FFIV will regain the momentum?