The cyber security space has been a tough one with general PANW still 27% off recent 52 week highs. Notice those highs came on 7/23-24/15 as it was stopped at the very round 200 figure (its on a current 2 week losing streak down more than 13% in the process, but it is higher by 4.1% this week heading into Friday). FEYE seemingly the subject of daily takeover speculation is lower by 70% from its 52 week highs and the sideways consolidation underway the last 7 weeks is getting a bit long in the tooth. FTNT like PANW was dealing with a round number of its own, 30, that was problematic all year long in ’16. Below is how we looked at FTNT in our Tuesday 3/22 Game Plan and the following chart takes on a present view of the stock..

Stocks that can be bought as they take out bullish ascending triangle formations are FTNT. FTNT is a cyber security play which is lower by 5% YTD and 16% over the last one year period. Earnings for the most part have been solid with gains of 6.7, 10.7 and 10% on 1/29, 7/23 and 4/21 and a loss of 19.3% on 10/23. Perhaps that one large miss was a one off event. The stock was mired in a steep downtrend not long after hitting resistance at the very round 50 number on 8/10/15 as it declined 19 of 29 weeks ending between 7/31/15-2/12/16. Since it has gained 5 weeks straight with issues getting above the round 30 number. That recent action has formed a bullish ascending triangle and enter with a buy stop above 30.25.

This article requires a Chartsmarter membership. Please click here to join.