Fortinet - Flag on 10smaSoftware companies have really enjoyed the rally year-to-date.
Fortinet shocked the market with a triple play in earnings, which resulted in a jump to start the "All-time-high Run"
TWLO, SHOP, OKTA, TTD are some examples of stocks with very similar moves, indicating oversold territory in the RSI can stay oversold for longer than you might expect. Also, the 10-day-moving average has been very indicative in these charts.
As long as we continue to hold the 10sma, the trend remains bullish.
OKTA
OKTA Put SpreadOKTA Put Spread Jan 17 Exp Spread is 115/110,
2.05 Cost, Max gain is $100, max loss is the same if it moves higher to 122, it looks to be moving into a deeper correction into support with ER being mediocre.
$3.05 exit price.
Delta risk is (0.45) Low odds by delta but it looks like a good trade.
Cybersecurity ETF - Huge volume spike Technical Analysis:
CIBR had a volume spike of 850,000+; which is 80% higher than usual, yesterday November 12th 2019.
The 50sma (yellow line) is bouncing back, trying to cross the 200sma (red line), and after it must cross 100sma (blue line) for it to continue being bullish.
10sma is short-term support - $29.3
All time highs is short-term resistance - $30.7
CIBR top holdings:
VMW - 6.64%
PANW - 6.63%
AVGO - 6.15%
CSCO - 6.03%
OKTA - 5.12%
FEYE - 3.50%
FFIV - 3.32%
SPLK - 3.18%
JNPR - 3.18%
OKTA - wait for it to be come down between 108-111, then buyOKTA has a strong chance to grow off of a strong support lvl of around 108 to 111. It's been tested for past few weeks.
From the Gann, it had crossed low 80's at 1/8, mid-80's at 1/4, low 90's at 1/3, then mid-90's at 1/2 and finally stable at 1/1 around 107. In the next phase, it jumped to 113 last week, could drop down to between 108-111, then next stop for Gann cutoffs could be around 120 for 3/1, then mid-120's for 4/1 and strong resistance at 130 for 8/1. Time to invest now, and sell later.
Btw, don't expect it to reach to 130 anytime soon, definitely not in 2-3 weeks. It could take quite a significant time. It needs more time to stabilize in the range of 105-120 to build a strong support there. Expect equal volumes buying/selling for sometime, then a lot of buying after quite some time.
OKTA bullish momentum trade into earningsOKTA's trend is bullish and has been for quite sometime. OKTA grew its revenue by 60% last year (2018). That’s a head and shoulders above most loss-making companies, especially in the cloud space and SSO. And the share price has responded, gaining 126% in the last 12 months. OKTA has reacted bullish more than bearish on earnings historically.
Currently the market is holding a nice tight uptrend after making successive new ATHs. Based on the price action the last few weeks and few days, it appears OKTA would like to continue higher in the low to mid $90 region either before or post ER.
This is a high risk setup. However, price is making higher hows and higher lows as you would like to see in a bullish trade.
The trade is entering May $80 calls at $12.40 (stop-limit) with a stop loss of $10.40. Max loss of $200 per contract. The plan is to take profit before the ER if price reaches $92-$93 otherwise will considering holding over ER for the upper 1.618 fib target and higher. But first let's clear $88 ahead of earnings.
Let's see what happens this week :-).
OKTA Short NASDAQ:OKTA - Bullish bat formation but not before an extreme correction of the December 19, 2017 bull run.
Expecting it to bottom out at $29.19 around November 20, 2018.
If it breaks $58.8 the next seven (7) trading days, this entire analysis is shelved.
Just got into trading - please comment and provide any feedback for my assessment.
Thanks - happy trading!