Is This The Only Bullish Tech Stock In The Market Or Will It Break This Key Level?
The stock in focus this Friday may not be one you have ever traded or ever even heard of for that matter. Arista Networks (ANET) engages in the business of developing, marketing, and selling cloud networking solutions. After a long and steady increase in prices over the past year, we are finally ready to take a possible trade on this stock.
And the timing couldn’t be better after the stock showed it is bit more resilient to a market decline than most other stock in the market right now, especially those in the technology sector. The setup we are looking at, as you may have guessed by now, is a straight forward one.
After a bit of a rejection of the 52-week high just under 200, the stock is now looking to find some solid ground. What could very well end up happening from here is we find our way back down to a previous level of support around 180 for yet another bounce.
However, if that level fails to hold us up again, we could find our way back down to 170 or lower given the overall market is trending lower. For now, the setups seem straight forward, but the real question becomes, will the rest of the market hold up or not?
With the spate of declines we have already seen across the sector and market overall, one might reasonably think more declines are to come. In which case, I would be keeping my eye on how this stock in particular, which has done a decent job so far of holding up during these declines, reacts. If the market pushes higher, this stock should get a bump also as it has already been on an uptrend move for the past several months.
If you’re looking for a bullish move from a stock, this could be the one to watch. However, that does not rule out the possibility for this stock to do an about face and head lower. The key level to watch here is that 180 mark for a bounce or a breakdown. Be sure to keep this stock on watch as we close out another eventful week trading.
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