Chart of the Day: Arista Networks Is a Screaming Buy, This Pattern Says
A tried and true bullish pattern is emerging.
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The pennant or flag pattern is one of the most reliable chart patterns in the technical analysis playbook. A strong move up that looks like a stick followed by a series of lower highs and higher lows that looks like a flag or triangle, then and eventually break higher. This move should be on higher volume or just swelling turnover.
That is what we see from Arista Networks (ANET) and has us very excited for the near future of this stock.
The fundamental story is strong as told recently by Chris in various articles and the Weekly Roundup this past Friday.
The chart, though, is intriguing, with indicators not yet joining the bullish parade. We think eventually that is going to happen for Arista, it is just a matter of time.
A move above the $200 level would be quite bullish for the stock, and we may see a run past all-time highs following, which is not too far off.
We like Arista Networks in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks” (like, most recently).
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At the time of publication, TheStreet Pro Portfolio was long ANET.
