Chart of the Day: Arista Networks Continues to Fight
It sure seems a breakout is imminent, but there is solid resistance just above.
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Three times already Arista Networks (ANET) has tried to break out above the $200 level but has failed. Now, that could be a concern for the bullish trend, just not seeing any buyers stepping in to add shares at higher prices. But we must remember the time period, a very slow and lethargic time for the stock market. As such, we can give the benefit of the doubt to a name like Arista, which really has done nothing wrong and continues to fight for higher prices.
Notice the candles remain blue, that is bullish on the GoNoGo composite of indicators. Even this recent pullback to the 14-period McGinley moving average is not damaging to the trend, this was on very low volume. That tells us the sellers do not have much conviction. Even though money flow is now bearish it is just a mild condition. MACD is negative here but simply reflects the trend slowing down, this is not a seriously bad situation yet.
ADX is strong, which says the trend is also very strong (it is above 22, basically a solid trend is in place). Of course, this indicator does not tell us the direction, only the strength. Momentum is starting to gather, the stochastics rolling up and that may be enough to push this stock above that $200 level in the weeks ahead.
We like Arista Networks in TheStreet Pro Portfolio and rate it a two, stock pile on pullbacks.
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At the time of publication, TheStreet Pro Portfolio was long ANET.
