TA Discover: Why You Should Look At F5 Networks Today!

F5 Networks has surpassed consensus EPS estimates four times over the last 4 quarters and a quarter go, market expect them to post earnings of $2.42 per share.

The last EPS earnings of $2.53, delivering a surprise of 4.55% reflected the improving demand for its software solutions.

The demand had been hurt by tightened IT spending amid persistent macroeconomic uncertainties for the past few quarters.

As large enterprises increases their cloud workloads, F5 Networks has seen their NGINX subscription demand grow stronger. Not forgetting that they won a multi-million-dollar term-based subscription renewal for its NGINX solution at its last reported quarter.

Furthermore, strong growth in renewals, stabilization in new-term subscriptions and interim expansions also contributed to the Subscription Software’s revenue growth.

In this article, I would like to share more by using Technical Analysis (Multiple Indicators) to look at how F5 Networks stock price have been performing after its earnings.

I am assessing whether it would be a good time to capture a good entry price before F5 Networks surge.

SMA has shown that F5 networks has begin its bull trend in an upside move.

This would normally mean this is a good opportunity to plan for an entry trade.

But it is not advisable to depend on one indicators as this only show the trend. I would use momentum indicator next to determine if F5 networks is indeed experiencing a strong bullish momentum.

RSI has shown that F5 networks just enter into overbought region. This normally indicate that there might be some selloffs.

I would think we might want to find out if there is any potential reversal and how the price trend is like (the strength of the trend).

This potential selloffs might be false signal.

But ADX is showing that it is below 20 which indicate a weak trend for F5 networks, so this would mean that it might be a good time to buy, as ADX is closing into 20.

+DI is above -DI by a large margin which indicate that it could be experiencing a strong upside move.

When this happen, it might mean that there is a potential reversal coming or a reversal already happen.

Using Parabolic, we can see that F5 networks has went through a bullish reversal near mid-July.

With its positive earnings result, F5 networks is experiencing a strong bullish upside move. This might be a good time to plan for an entry.

I will share my estimated target price in the summary section below.

Based on the different technical indicators, most of them indicate that F5 networks is in a bull trend and this trend would only get stronger with a positive earnings and the future guidance on its subscription revenue and earnings look promising.

I would think it might be a good time to plan for an entry. My estimated target price would be $154.50 to $155.00.

If price goes below $154, I would look at the ADX for +DI and -DI movement.

Appreciate if you could share your thoughts in the comment section whether you think it is a good time to buy F5 networks? If so, what would be your estimated target price?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.