Shares of Growth Seeker holding Fortinet (FTNT) dropped by half in just seven months last year, but prices are now rising from those ashes. Let's see if this name warrants our attention.
In this daily chart of FTNT, above, we can see that prices had a tough go of it the latter half of 2015. We can see a gap to the downside in October, and a bearish death cross in November. A death cross is a colorful way of saying that the 50-day average went below the 200-day average. Moving average crossovers are a popular way of determining buy and sell signals.
The On-Balance-Volume (OBV) line turned down from August until February, and has improved just slightly since. Prices have rallied above the 50-day moving average line, and its slope is now positive. Prices are testing and crossing the 200-day average line.
In this three-year weekly chart of FTNT, above, we can see a two-year rally followed by a seven-month downdraft. It is interesting how stocks can go down a lot faster than they go up. Prices broke down below the rising, 40-week moving average, and its slope turned negative. Prices are back up to the 40-week line, and could break above it, but the slope is still down.
The OBV line on this timeframe is basically neutral. The Moving Average Convergence Divergence (MACD) oscillator gave a cover-shorts buy signal, but is still below the zero line for an outright go-long signal.
Strategy: The chart of FTNT has promise, but I would like to see a retest of the 50-day average before committing. Let's see if we can return to the $31 to $30 area and see if buyers emerge. I like company.