ANET trade ideas
$ANET: Arista looks 'excellent' indeedJust as the greek word, the chart here looks excellent...There's both a daily and a monthly uptrend signal active, which gives this stock tremendous reward to risk potential long term. I am not a huge fan of the valuation, so I was skeptical to get involved but perhaps I am missing something regarding fundamental catalysts for the stock going forward, perhaps related to the boost to demand for their products from the AI large language model war. Companies might scramble to get the required infrastructure to run their algorithms on?
Chart wise, the setup is perfect and predicts a steady trend if price stays above $119 where the monthly trend would be invalidated. The daily predicts immediate upside within the next 10 business days.
Best of luck!
Cheers,
Ivan Labrie.
Arista Networks Could Be Fighting HigherOnly six members of the S&P 500 hit new 52-week highs last Thursday. (It was the fewest since March 17, according to TradeStation data.) Let’s consider Arista Networks, one of that small handful of names.
The first pattern on today’s chart is the bullish gap on August 1 after quarterly results beat estimates. ANET not only held those gains as the broader market fell this month. It’s also made higher weekly lows. That may suggest that a new uptrend is taking shape.
Next, the tech company jumped to new highs on August 24 after Nvidia spurred optimism toward artificial intelligence (AI). It was swept lower along with most stocks, but it’s now trying to stabilize near the previous peak from May 30. Is old resistance becoming new support? Prices have additionally tested the 21-day exponential growth moving average (EMA) -- a potential trend indicator.
If ANET manages to hold this price zone through the volatile Labor Day period, traders may look for more upside into September.
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ANET: Ascending Triangle, Not confirmed (35,79%)(2/1000)(2/1000)
Ascending Triangle for ANET. Not Confirmed yet.
Pros:
1- Bullish Ascending triangle
2- Descending volume during formation of the triangle (last half)
3- PPS above 50MA and 200MA
4- RS above 0 and ascending
5- R/R ratio above 5
6- 250RSI above 50 and ascending
7- 50MA above 200MA
8- 50 MA flat but 200MA ascending.
Cons:
1- ATR is descending/flat, less volatile
2- Triangle not confirmed yet
Target price is 232,05$.
Again, stay humble, have fun, make money!
MAAX!
ANET Entry, Volume, Target, StopEntry: when price clears 178.36
Volume: with daily volume greater than 6.35M
Target: 206 area
Stop: Depending on your risk tolerance; 169.17 gets you 3/1 Risk/Reward.
This swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
ANET - Entry, Volume, Target, StopEnter when price clears 171.44
With daily volume greater than 3M
Target: 214 area
Depending on your risk tolerance: 157.23 gets you 3/1 Risk/Reward but it's over 8%, I would consider a stop below the low of the candle before the break above 171.44, or something near that.
This trade idea is not trade advice. This idea is strictly based on my ideas and technical analysis. Not due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
ANET , LONG Bought the bull flag on ANET / wedge pop
Earnings is monday AMC but so I am literally giving it a monday to hopefully move enough to hold a bit . 1.5 R gives me 1/4 carryover, 1R gives me a 1/6 , anything under that is just going to be sold . I have done the math on this and it allows for a 4 R gap down unscathed ... if earnings reaction bad ...
In my opinion 1.5 R , sell 3/4 , hold 1/4 is the best , holding 1/4 your balance still needs to go 4X 1R to equal 1R , so I sort of feel like its feels like a good bare minimum threshold level to carry over a responsible amount whereas 1R could work but then your balance needs to move 6R to equal 1R . For me , personally , I think that I will gravitate to 1.5R sell 3/4 , hold 1/4 , as a more typical procedure but still figuring it out ....
Time for a hike for me now , have a good weekend ~
QQQ note :
Maybe next week we might actually break up too , back in the trading range breakout mode on QQQ again for now . So far with this multi week range , Al brook 80 % rule has really been spot on , that being that 80 % of the time trading range breakouts fail to have follow-through looks like we might close at the top again today , which would mark the third attempt at a breakout , none of the breakouts up or down have worked so far ... will this one be the 20% or the 80% , guess its better to expect the 80% but man would it be nice to get the 20 %
ANET - LONGRecent TT's breakout that also has some pretty darn impressive earnings and sales to accompany ... Brought in after-hours ...
Market and General Notes
Comeback day for market from what many bears probably saw as a short QQQ setup per yesterdays close but 80% rule ( 80 percent odds of failed breakout and range resumption ) . In turn bulls pushed QQQ up and over the range but now once again odds favor range resumption , would love to see the 20 % chance that we follow-through on todays move though and push up and away from the 6 day range ... to date . If tomorrow bulls can push and get us out of this range that would be nice :)
Was stopped on SMH today and semis showed weakness vs QQQ , not ideal , but unless it breaks key levels trying to focus on that and MCHI as ETF names I'd like to play . ELF/LW/XLC all performing well .
IG net short positioning remains crazy high
France 40 Hits 90% net short .WOW
Dow jones 72% net short
SPY 64%
Then per futures positioning commitments Dealer positioning is net long and lots of leveraged money to the short side . I will bet on the dealers money ~
ANET: With a Breakout, a Clear Transition to the Advance ZoneArista Networks, Inc. broke its key resistance and entered the advance zone on strong earnings growth.
It stayed trapped in the price channel ($100-$140) for more than a year due to the downtrend in stock markets. But now with good volumes and steady growth behind it, it's taken a big step.
ANET's revenue grew 49% (TTM) and income 61% (TTM) and is expected to continue its growth momentum.
This cloud computing stock is a very good pick over the long term.
ANET - Resting for a WhileANET is resting for a while in its accumulation zone.
This cloud-computing company experienced a boom in 2021 when its price doubled. However, by the start of 2022, it has entered accumulation stage after witnessing a brief failed decline.
FUNDAMENTALS OF ANET
ANET has impressive fundamentals. Its financial results are better in every quarter than its previous quarter - a key indicator for a multi-bagger company.
Its revenue grew 42 % in TTM while its net income saw a rise of 48% in TTM. Company has high margins and negligible debt, making it resilient to deteriorating financial conditions and interest rate hikes.
WHEN TO BUY
Once ANET is out of accumulation zone with increasing volumes, that's best time to buy it.
megaphone down1. MONTHLY - nice double top and break of higher low --> now testing higher low
2. WEEKLY - following trendline down
3. DAILY - looks like a megaphone is forming...nice trapping inverse hammer
I'm looking for the gap to fill and then dojos or wicks...any weakness under that monthly line before more shortage