Chart of the Day: Arista Networks Tries to Break Downtrend
After putting up strong earnings, the stock is making a breakout attempt.
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Even with a strong rally in the markets we are seeing some weakness, especially around the periphery.
Stocks like Arista Networks (ANET), which handily beat earnings and revenue estimates for the second straight quarter, are struggling to find a new direction. Recently, a pattern of lower highs, lower lows has snared Arista and stunted its growth trajectory. We thought a nice basing period in the Fall would have been enough to launch the stock to new highs following earnings but a recent selloff knee-capped Arista and a downtrend pattern emerged.
A recent test of the moving averages was rejected but we’ll have to see where things go from here. MACD is on a sell signal while money flow just went negative. Momentum is starting to pick up, but again let’s see a much more substantial move higher in price with followthrough. Relative strength is in the tank but is starting to improve, this indicator is bearish. Lastly, candles are purple, which means cautiously bearish on the GoNoGo composite of indicators.
A move above $185 confirmed would be bullish. We like Arista in TheStreet Pro Portfolio and rate it a one.
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At the time of publication, TheStreet Pro Portfolio was long ANET.
