Approaching Resistance - F5 Networks

Published on Friday, 10 February 2012 08:20 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of F5 Networks, Inc. (NASDAQ:FFIV) are trading very close to calculated resistance at $127.81 with the current price action closing at just $125.75 placing the stock near levels that make it difficult to buy.

F5 Networks, Inc. (NASDAQ:FFIV) is the global leader in application delivery networking, it provides integrated Internet traffic management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications. Its software-based solutions manage, control and optimize Internet traffic and content.

F5 Networks' current stock range is defined by current calculated support defined at $116.84 and by the resistance level at $127.81, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for F5 Networks, as the stock is well above support, however, as the stock pulls back towards $116.84 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $127.81 then traders will get an opportunity to enter F5 Networks stock by establishing a position as the stock moves to a higher range.