NET : SLINGSHOT TO BOOMER SET UPCLOUDFLARE (NET) met breakout expectation from a Blue Sky set-up and is currently on a pause currently on Slingshot Set-up to potentially continue its range expansion. Needham just raised its price target to 38, a mere 3% away from its current price. NET is clearly a beneficiary to the work from home and e-commerce shift with increasing demand for cybersecurity. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and Internet of Things (IoT) devices.
On technical analysis, a Slingshot set-up is a brief healthy profit taking with very little volatility which could result to another range expansion similar to the Bullish Marubozu breakout candle 2 days ago. If the expansion doesn't materialize today, the ranges can get tighter for 2 more days which could be a springboard to the potential expansion (Boomer Set-Up). To avoid opportunity cost, it's best to buy at the break of yesterdays high supported by volume acceleration. Price action is best observed and managed on the 15-min chart for ease of execution. Trade duration is as little a few hours to a day. If position is ahead and does not hit price target, sell half to protect gains and trail stop the balance on the 5-day EMA to minimize weekend risk.
As always, risk first and profit second. Be aware of your risk profile and only risk what you can afford to lose.
