350 H&S Formation possible setupAs it continues to come down and hit the uptrend, it could be a perfect place to reset but either to break back to the way it came from or to 350, positioning itself for another fall.
A1NE34 trade ideas
ANET potential Buy setupReasons for bullish bias:
- Entry at HH breakout(DOW)
- Price bounce from trendline
- Positive Earnings
Here are the recommended trading levels:
Entry Level(CMP): 313.85
Stop Loss Level: 283.76
Take Profit Level 1: 343.94
Take Profit Level 2: 363.20
Take Profit Level 3: Open
ANET Entry, Volume, Target, Stop
Entry: with price above 329.04
Volume: with volume greater than 1.96M. The more volume the better.
Target: 378.13 area. This is an area, you might consider existing early if price drops below a significant moving average such as the 10, 20, or 50 EMA. You might also considering holding some portion of the trade longer as price closes above significant moving averages.
Stop: Depending on your risk tolerance; Based on an entry of 329.04, 312.71 gets you 3/1 Reward to Risk Ratio.
This LONG 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.
289 to 331 H&S Formed idea on the 100 smaJust an idea, and thought that the head would get built and run back down to the upper 200s and mid-300s before deciding the route it wants to take. If this isn't the next setup, then we still see a correction continuation of around low 300 before a reversal.
Arista Networks Has Pulled BackArista Networks jumped to a record high last month, and now it’s pulled back.
The first pattern on today’s chart is the high-volume jump on May 8 after earnings and revenue beat estimates. Notice how its closing price that day of $291.67 became apparent support on May 23 and again last week.
Second, the recent lows were above the 50-day simple moving average. That may reflect a bullish trend over the intermediate term.
Third is the falling trendline along the highs in late May. Will closes above this resistance draw buyers from the sidelines?
Finally, stochastics have dipped to an oversold condition.
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ANET in a strong upward trendANET is hitting higher highs. I am predicting the next level it can hit is 349. There are few key levels below that can be used as stop losses just in case there are bumps in the up direction.
ANET - Breaking out of Prior ResistanceArista Network has been a star.
I was unable to get in after earnings but got in today.
Earnings came in super strong and they also did share buyback recently. There was broad based growth in cloud, AI and enterprise business.
Today, the break out of 306 came in with decent volume.
My stop is below 300 and I personally believe this stock can do 2x from earnings.
We are looking at around 520-540 for my initial target.
Goodluck!
5/7/24 - $anet - beware, valuation vs. growth too rich5/7/24 - vrockstar - simply too expensive in this tape even for a beat. will need to smash for stock to go higher. i'll be shorting any pop/ regarless of the print. i'll save the space and not explain why it's a short/ and i'm not shorting - but i'd stay away at best and if you own it, consider trimming > 10x sales sub 2.5% fcf yield, more epensive on PE than mag 7's and 10% top line growth is a no go zone rn. look at DDOG results... good, expensive, down. i'd expect this to be down 10-15% minimally and might be interested in taking another look below $250.
We Like The StockBullish on ANET for a pre-earnings run up. Breakout level = 297 . I am buying any dip over the next day or so in the 284-287 range (buy zone). If it breaks above 297 I'll chase.
*Initial target range = 306-313 by 4/19
**Goal Target = 335 by 4/26
- Stop Loss = sustained break below 285, if this occurs it will form a "spring" in its re-accumulation phase in the 270s before breaking out end of Apr. rather than in the coming week.
Arista Networks Faces Margin Pressure Despite Revenue Growth
Arista Networks ( NYSE:ANET ), a prominent player in cloud networking solutions, recently reported its fourth-quarter earnings, surpassing profit expectations but issuing a lukewarm forecast for the upcoming quarter. Despite strong revenue growth driven by robust demand from tech giants like Microsoft and Meta Platforms, Arista's ( NYSE:ANET ) shares took a hit in after-hours trading as investors reacted unfavorably to the company's projected lower adjusted gross margin for the first quarter. Let's delve deeper into the factors behind Arista's mixed performance and what it means for investors.
Arista's Quarterly Performance:
In the fourth quarter of the fiscal year ending December 31st, Arista ( NYSE:ANET ) witnessed a notable uptick in revenue, with a 20.8% year-over-year increase, reaching $1.54 billion. This figure surpassed analysts' average estimates, demonstrating the company's ability to capitalize on the sustained demand for its networking solutions amid the ongoing expansion of cloud infrastructure. Additionally, Arista ( NYSE:ANET ) outperformed earnings expectations on an adjusted basis, reporting a profit of $2.08 per share compared to estimates of $1.70.
Margin Pressure and Operating Costs:
However, despite the revenue growth and profit beat, Arista's outlook for the first quarter fell short of market expectations, primarily due to concerns over its adjusted gross margin. The company forecasted a margin of about 62%, below analysts' consensus of 62.7%, indicating a potential squeeze on profitability. This margin pressure can be attributed to higher operating costs incurred by Arista ( NYSE:ANET ) as it focuses on expanding its operations and investing in future growth initiatives. In the fourth quarter alone, the company's operating expenses widened to $359.3 million from $299.7 million a year earlier, reflecting the challenges of balancing growth with profitability.
Industry Landscape and Peer Performance:
Arista's margin woes echo broader trends within the networking sector. Peer company Juniper Networks recently reported downbeat revenue, citing lower client spending on cloud computing and network security services. This highlights the competitive pressures and evolving dynamics within the industry, as companies strive to adapt to changing market conditions and customer demands. While Arista ( NYSE:ANET ) continues to benefit from strong demand from key clients like Microsoft and Meta Platforms, it faces intensified competition and margin compression as it navigates the evolving landscape.
Investor Sentiment and Market Reaction:
The market's reaction to Arista's earnings reflects investors' concerns over the company's margin outlook. Despite exceeding profit expectations, Arista's shares dipped around 6% in extended trading following the earnings release. Investors appear to be cautious about the company's ability to sustain its growth momentum while maintaining healthy margins, particularly in the face of rising operating costs and competitive pressures. Michael Ashley Schulman, chief investment officer at Running Point Capital, noted that while the profit beat was positive, it may not be sufficient to drive shares higher given the lower gross margin projection for the upcoming quarter.
Looking Ahead:
As Arista ( NYSE:ANET ) navigates the challenges of margin pressure and heightened competition, investors will closely monitor its strategic initiatives and execution capabilities. The company's ability to effectively manage operating costs, drive efficiency improvements, and capitalize on growth opportunities will be key determinants of its long-term success. Additionally, developments in the broader networking industry, including technological advancements and shifts in customer preferences, will shape Arista's trajectory moving forward. Despite near-term headwinds, Arista's ( NYSE:ANET ) strong revenue performance underscores its resilience and potential for sustained growth in the dynamic landscape of cloud networking solutions.
Conclusion:
Arista Networks' ( NYSE:ANET ) recent earnings report highlights the company's ability to deliver solid revenue growth and exceed profit expectations, driven by resilient demand for its networking gear. However, concerns over margin pressure and heightened operating costs have dampened investor sentiment, leading to a decline in share prices. As Arista ( NYSE:ANET ) navigates these challenges and positions itself for future growth, investors will scrutinize its ability to maintain profitability while capitalizing on opportunities in the evolving networking industry.
ANET Arista Networks Options Ahead of EarningsAnalyzing the options chain and the chart patterns of ANET Arista Networks prior to the earnings report this week,
I would consider purchasing the 280usd strike price Calls with
an expiration date of 2024-2-16,
for a premium of approximately $18.25.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Further Long entry into or after earnings BreakoutAs we approach the all time highs on Arista Networks, technically the price has been in the range of upside since 2023, and looks gain more traction as we approach a key moment for the future of ANET. This sector, electronic tech sector should continue to gain traction so long as the markets sentiment around tech stocks, semiconductor equities continue to rise. The volume has been increasing and the sentiment around this company has been quite strong in recent months. The technical are aligning as we observe the two charts below daily to the left and weekly to the right. Price is in a clear uptrend no doubt, although of the last 6/9 days have been bullish the 3 days being bearish, the most recent long wick/shadows or big bodied candled has provided an increase runway leading into earnings. The momentum based on the moving average convergence divergence (in purple) is quite strong and there is a quite a gap between the signal line and macd line. The histograms overshadows the previous bearish bars.
JUST be aware we are reaching OVERBOUGHT region in regards to price action but if buyers continue to step in and risk on continued success from ANET this could be a good opportunity to go long or you could set up put options against this analysis.
ANET brekout bullish channel ANET is fundamentally looking like a very strong stock
Analysts ratings are a strong buy even at this price
yes this price :)
Currently its earnings are coming soon 12 Feb which could mean a two way movement
At the moment it has broken its own bullish channel and looks like it has room to run more then 300+
stop loss @ 243
$ANET touch 50% Fib retracementNYSE:ANET from Market Smith, it touch the 50% Fib retracement and now is at 62%, volume is lower but it might be due to the season. but the uptrend still strong.
ANET: Possible BuyAfter breaking above the channel and successfully retesting the upper trend lines I'm expecting the price to continue higher backed by positive analyst expectations.
ANET, Uptrend based on AlgoSignal StrategyThe current point exhibits promising upward signals according to my algorithmic system, meeting various criteria. These include rising trading volume, an upward trend indicated by prices above EMA20 and EMA50, and the closing price surpassing VWAP. As a result, the present conditions suggest a potential upward trend.
ANET: Price Psychology, Fundamentals & Price ProjectionFundamentals :
ANET is lacking in one important parameter in my checklist; that is, sales acceleration. Three year earnings growth rate is strong. A growing number of funds are adding this stock to there portfolios. It is not the best stock that I would like to own fundamentally, but it is a good stock to invest in. So, I will gradually add to it in smaller portions than normal until the fundamentals are no longer in favor.
Note: Earnings are coming out on Monday October 26, 2023.
Technicals :
ANET loves weekly 61.8% pullbacks since the beginning of its uptrend in March 2020 and since its inception around 2016.
A new weekly 61.8% pullback
Weekly HHHL with good volume
a-b-c equal legs completion + 3 bearish weeks down in an uptrend
uHd developing
horizonal+kijun support nearby
extreme indicator on the daily chart (not shown)
Price Projection :
If this is the bottom or near the bottom of the retracement in ANET's price, then the stock will reach 200 to 250 by December 2023 to January 2024, according to Fibonacci time projection analysis.
Final Assessment:
Stock correction is an opportunity to buy on a weekly dip as weak holders get flushed. Mid-term to long-term buyers will accumulate the stock.
ANET Minor Low BuyANET is in a strong trend and is potentially pulling back to price based support levels.
Prices have broken down from a bearish flag that formed after earnings. However, the price based pullbacks are supported by volume.
Two levels appear to be in play.
1. $213.16
2. $210.16
I will look for prices to hit these levels and then buy on the minor low breakout.
Title Minor Low Buy
Trade Theme Daily
Sector/Stock ANET
Trend G/G
Propulsion Yes
Vscore Almost - needs pullback
Vprofile Yes
RAF Extreme
Darvas No
Darvas 3.0 No
Entry Waiting for pullback
Profit/Breakeven Waiting for pullback
Stop Loss Waiting for pullback
Option Option Play
ANET, BUY, 10.57% PROFITBought NYSE:ANET on 10/30/2023 at market close and closed the position on 10/31/2023 at market open. Net 10.57% profit.
ANET - CoilingNYSE:ANET showing a flag pattern here with solid institutional volume after its power earnings move earlier this month. When volume dries up on a decreasing ATR, a potential breakout is very probable. We are targeting $203.
ANET Stock to Watch TodayHolding above its recent breakout and showing uptrending RS line against the market.
Nice pivot right on top of its 50 moving average line.
Top notch fundamentals as well.
ANET channel movementANET making a simple movement from the bottom of the channel
Current entry @ 183-184 range
SL 175
TP 200
$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.
