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CHART ANALYSIS


Smooth Surfing for F5 Networks Inc.

03/24/03 01:52:38 PM
by Andrew Hetherington

A flag formation inside of a larger triangle anticipates a breakout for F5 Networks.

Security:   FFIV
Position:   N/A


Figure 1: Daily chart of FFIV.

The daily chart for F5 Networks (FFIV) shows a 5-month ascending triangle with diminished volume on the creation of the pattern. Although this volume is less than perfect, it is still diminished from left to right. The tops and bottoms are clearly defined and now a flag pattern has developed prior to the anticipated breakout topside. The anticipated breakout is in the $14.60 area. As the pattern develops, volume needs to continue picking up to overcome the resistance at $14.60. The third fan line has been created, similar to many other equities, and can be use as a guide to protect against downside risk. If this line is broken, currently in the $12.00 area, then sell out long positions for a small loss.

Figure 2: Weekly chart of FFIV.
Graphic provided by: SuperCharts.
 
On the weekly chart, note the strong the resistance in the $14.60 area. In addition, selling can be anticipated after the breakout and the expected advance towards the next resistance area in the $17.60 area. This is the likely point where it will run out of steam and take a breather.



Andrew Hetherington

Classic Dow Theorist who trades as a pure technician, using pattern recognition.

Toronto, Canada

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Date: 03/25/03Rank: 4Comment: 
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