FFIV: Be Ready At This Level

F5 Networks, Inc. (NASDAQ:FFIV) is moving sharply higher again today, two weeks after reporting earnings that crushed the stock.  The stock was trading in the $140.00 range, prior to earnings. After reporting results far below Wall Streets estimates, FFIV plunged to a low of $102.66. Since then, the stock has climbed sharply higher, especially over the last week. Today FFIV is trading at $127.23, +3.59 (+2.90%).

While the recovery in the stock has been more than impressive, it is moving into major resistance levels that will serve as a great shorting opportunity. Anytime a stock has a sharp drop on poor financial results, then rallies, a new shorting opportunity will arise. The first level to watch is the daily 50 moving average. This level sits at $130.80. The next point will be gap fill from the earnings date at $138.78.  Both these levels should be solid shorting opportunities.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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