F5 Networks Is Near a Key Resistance Area

Published on Thursday, 22 November 2012 08:36 Written by TradersHuddle Wire

New York, November 22nd (TradersHuddle.com) - Shares of F5 Networks, Inc. (NASDAQ:FFIV) are trading very close to calculated resistance at $90.82. The stock ended the trading session at just $90.05, which is near levels that make it difficult to buy or start a position.

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' stock range is defined by its calculated support defined at $84.71 and by the resistance level at $90.82; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for F5 Networks. However, as the stock pulls back towards $84.71 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $90.82 then traders will get an opportunity to enter the stock as it moves to a higher range.