Fortinet (FTNT) was unable to break out above $37 this summer and prices gaped to the downside in October. Prices made a weak recovery to the underside of the 50-day and 200-day average. Prices look like they have turned down again for a test of support. Let's look closer.
In this one-year daily chart of FTNT, below, we can see the turnaround in the first quarter of this year. Prices rallied until late July and have been undergoing a shift. The shift has been from up to side and now perhaps to down. The daily On-Balance-Volume (OBV) line rose with the price action until the end of July. Since July, prices have made three attempts to move higher, but the OBV line has trended lower. Prices moved to the downside in October, breaking the 50-day and the 200-day averages. The OBV line moved still lower. The trend following Moving Average Convergence Divergence (MACD) oscillator has been in bearish territory below the zero line since early October and is now poised for a new sell signal.
In this three-year weekly chart of FTNT, below, we can see that prices are below the rising 40-week moving-average line. The On-Balance-Volume (OBV) peaked in mid-2015 and has been declining since that zenith. The Moving Average Convergence Divergence oscillator signaled a liquidate longs sell at the end of September and is crossing the zero line for an outright sell signal. A weekly close below $30 could precipitate further declines to the $25 area in the weeks ahead.