Fortinet Inc

Fortinet, Inc. is engaged in offering cybersecurity and networking solutions. The firm offers cyber security solutions to many different types of businesses, including corporations, communication service providers, security service providers, governmental agencies, and small businesses.

Technical Observation (on the daily chart)

Since hitting a 52-week bottom of USD 42.61 in the first week of November 2022, the price of FTNT has been on a medium-term uptrend and has returned around 52.76%. Given that the price was experiencing many rejections from the long-term (200-day) SMA, a breakout above the SMA has further accelerated the stock's ascent, which is currently trading at levels around its 52-week high. Moreover, the momentum indicator RSI (14 period) shows a value of 61.73, down from levels of 70, showing a correction from a level that was almost overbought. The stock has a solid support level around USD 60 and a good resistance level around USD 72; a breakout on either side of these levels will determine the company's future trend. Finally, price is above the trend-following indicators 50-day SMA and 200-day SMA which can act as dynamic supports in the short term.

As per the above-mentioned price action and technical indicators analysis, a ‘Watch' rating has been given to Fortinet Inc at the current price of USD 65.09 as of April 06, 2023, at 10:25 am PDT. Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is April 06, 2023. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.