Arista Networks (ANET) is the 'Stock of the Day' at Real Money, and it is plunging this Friday as traders react to its Q3 earnings report and the sharp downside revenue guidance.
Arista Networks builds scalable, high-performance and ultra-low latency cloud networks but it lost a cloud titan customer and cut its guidance.
In this daily bar chart of ANET, below, we can see that prices have been in a decline from a peak back in April. Price weakness is not new to traders and investors. ANET shares did show some improvement earlier this month as the slope of the 50-day moving average line turned positive and the 200-day moving average line continued its gradual rise from July.
Trading volume did not increase in October, telling us that there was not a strong commitment to upside. Once again the old tool of price and volume tells a story that still works in 2019 - you need to see to volume increases in the direction of the trend.
The On-Balance-Volume shows a decline from April and that signals to us that sellers of ANET have been more aggressive for several months.
The Moving Average Convergence Divergence is slightly above the zero line but that should turn bearish with today's sharp price weakness.