• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Arista Networks Correction Does Not Appear to Be Over

The technical signs are indicating weakness in the shares of the maker of cloud networking equipment.
By BRUCE KAMICH
Mar 01, 2021 | 08:27 AM EST
Stocks quotes in this article: ANET, PANW

In his first Executive Decision segment of "Mad Money" last Friday,  host Jim Cramer spoke with Jayshree Ullal, CEO of Arista Networks Inc. (ANET) , a cloud networking equipment provider.  

No single company can do it all, Ullal said, which is why Arista Networks has partnered with best-of-breed companies such as Palo Alto Networks (PANW) to help secure their offerings. The company's products now seamlessly blend custom silicon hardware with proprietary software solutions, she said.

Let's check out the charts and indicators of Arista Networks to see what may happen next with its shares. 

In this daily bar chart of ANET, we can see how weakness has been unfolding in recent weeks. Notice how prices dropped sharply and quickly below the 50-day moving average line. Trading volume has increased on the decline and the On-Balance-Volume (OBV) line shows a decline that started in the middle of January, telling us of a shift from aggressive buying to aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator peaked back in November and has just crossed the zero line on the downside for an outright sell signal. 

In this weekly bar chart of ANET, below, we can see a bearish picture. Prices are still above the rising 40-week moving average line but a tight uptrend this past year has been broken. The weekly OBV line shows a small double top pattern, which suggests a shift to aggressive selling. The MACD oscillator is crossing to the downside for a take profit sell signal.  

 

In this daily Point and Figure chart, below, the software is projecting a possible downside price target in the $215 area, Support may appear before that area. 

 

Bottom line strategy: ANET could bounce in the short term, but a deeper and longer-lasting correction or pullback is the more likely direction of prices. 

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Technology | Technology Hardware & Equipment | Mad Money | Executive Interview | Real Money

More from Stocks

SoFi Technologies Is Primed for a Rebound

Bruce Kamich
May 16, 2022 8:50 AM EDT

Here's where the shares may be headed next.

Don't Worry About Capitulation but Focus on How the Market Wind Is Blowing

Bob Byrne
May 16, 2022 8:17 AM EDT

If you're a short-term trader, try to identify which way the market is trying to auction.

A Weekend Review of Indicators Points the Way to a Tradable Rally

Bruce Kamich
May 16, 2022 7:58 AM EDT

Keep in mind that this is not a buy-and-hold recommendation but rather a path to producing modest gains over the next few weeks.

Worries About a Potential Recession Are Building

James "Rev Shark" DePorre
May 16, 2022 7:39 AM EDT

For now, this is a bear market, and strength cannot be trusted.

Markets, Not So Confident Fed, Stocks Losing Streak, China Economy, My Trades

Stephen Guilfoyle
May 16, 2022 7:18 AM EDT

This week's earnings focus will be on the retailers with rivals such as Walmart and Target, as well as Home Depot and Lowe's reporting.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • 08:51 AM EDT PAUL PRICE

    Advice From the Future...

  • 12:20 PM EDT PAUL PRICE

    A Blast From the Past Regarding Bitcoin

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login