F5 Networks On the Lows, Dips 10 percent

The cloud-computing sector is seeing a run for the exits today. F5 Networks (FFIV), which is part of that sector, is trading at new intraday lows. The ticker fell 7.9 percent to $102.32 after sinking as much as 10 percent while attempting to hold its 20-day EMA near the $102.00 level. If that support area is broken, then the $99.00-$100.00 zone comes into play below. FFIV needs to hold this level or we could see the $95’s tested.

Stock prices are driven by two factors; fundamentals and investor emotion. In this case momo players, who usually don’t spend a lot of time fussing over valuation, are clearly on the ticker’s shorting side this session. Having said that, another scenario that should also be taken under consideration when trading this stock is that if FFIV shares test and hold the $99-$100 area, ticker could potentially bounce back to retest $105’s. If $105 is taken out, then ticker should revisit the $105-$110 range again.

Shares of Seattle, Washington – based F5 Networks fell 9.73 percent, or $10.85 to $100.66 on Nasdaq composite trading. About 3.6 million shares changed hands as of 12:59 am ET.

About Ron Haruni 1033 Articles
Ron is the Co-Founder & Editor in Chief of Wall Street Pit. Web Site: Wall Street Pit

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