Fortinet (FTNT) was looking risky a few weeks ago -- at least to me. Prices only made a shallow dip in late March and early April and the $52 level held. FTNT shrugged off the selling we saw last time: "Traders looking to preserve capital might consider booking some profits here and raising the sell-stops of the balance to $49 or just below minor nearby support." We can see now that prices never got close to $49 so I will assume that longs are largely still intact. (It's also one of the cyber security names discussed in the latest Mad Money Recap from Jim Cramer.) What makes sense now?
In this daily bar chart of FTNT, below, we can that prices have made new highs for the move up this month. FTNT is above the rising 50-day moving average line as well as the slower-to-react 200-day line. The daily On-Balance-Volume (OBV) line has been flat since early March and has not made a new high to confirm the current advance. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in March with a take profits sell signal but it has recently turned positive again.
In this weekly bar chart of FTNT, below, we can see that prices are clearly above the rising 40-week moving average line. The weekly OBV line has made a new high for the move up unlike the daily line. The weekly MACD oscillator remains in a bullish mode rising well above the zero line.
In this Point and Figure chart of FTNT, below, we can see the recent new high and an upside price target of $64.50 being projected.
Bottom line -- with FTNT pointed up with a $64.50 price target there is room for profits if we risk just below nearby support around $52. Try to buy FTNT near $56.