F5 Networks, Inc. (FFIV)
F5 Networks is a company that specializes in application services in the data center and cloud environments. It sells its products and services to government entities, service providers, and enterprises. F5’s applications are mission critical and therefore have high associated switching costs. F5 also has high design expertise and a strong brand, both of which allow it to price products and services at a premium. The larger shift towards cloud and F5’s strengths will be the primary drivers of long-term growth.
The long-term monthly chart of F5 Networks shows a steady uptrend. Starting September 2018, the stock went through a major retracement that lasted 18 months and resulted in a price fall of 60%. The price briefly went below the bottom of the long-term trend before bouncing back, starting April 2020, by about 90%. During this up move, the price went above a crucial resistance level at $146. The next likely target now looks to be 171 and then 199. Stop loss can be placed below the resistance zone, and long-term trend line at about $127
Position taken today at $151.81 with stop loss 16.34% below at $127. Medium term take profit set at $96 giving a return of 26%
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.