bullish hammer on the resistance a breakawayConfident as I am, it is coming to a time when things start to reset. It still has buying pressure moving it higher, and I would anticipate a more significant move based on a few key indicators.
ANET trade ideas
NYSE - ANET : 9 DEC 2024Bullish Bias for NYSE - ANET on 9 DEC 2024.
Buy Limit @ 108 with Stop Loss @ 104.5.
Take Profit @ 111
ANET Analysis: Preparing for a Breakout or Pullback?As of December 8, 2024, ANET is trading at $109.00. Here’s an in-depth analysis and trading strategy for this tech leader.
1. Fundamental Analysis: Leveraging Network Technology Growth
* Forward P/E Ratio: 25.3, suggesting a fair valuation for a high-growth technology stock with strong fundamentals.
* Expected EPS Growth: Projected 18.5% 5-year EPS growth, driven by demand in cloud infrastructure and data networking.
* Expected Revenue Growth: Expected revenue CAGR of 15% over the next five years, supported by market share expansion in enterprise data centers.
* Net Margins: 34.2%, indicating excellent operational efficiency and dominance in high-margin segments like cloud networking.
Fundamental Rating: 9/10
Arista Networks stands out as a well-managed company with exceptional profitability and consistent revenue growth in a high-demand industry.
2. Technical Analysis: Key Price Levels and Market Dynamics
Support and Resistance Levels:
* Immediate Resistance: $110.74 (current high and key breakout level).
* First Support: $108.25 (current consolidation zone).
* Major Support: $96.00 (historical demand area and near the 50-day EMA).
Indicators:
* MACD: Bullish crossover with strong upward momentum, signaling potential continuation.
* Bollinger Bands: ANET is trading near the upper band, indicating overbought conditions and possible short-term consolidation.
* Moving Averages:
* 20-day EMA: Positioned at $103.80, providing dynamic support.
* 50-day EMA: Positioned at $96.00, marking critical support for a deeper retracement.
Liquidity Zones & Order Blocks:
* Liquidity Zone: Between $108 and $110, where the price is consolidating before a potential breakout.
* Order Block: $90 to $96, highlighting strong historical buying interest and accumulation.
3. Trading Plan: Playbook for Scalping and Swing Trades
Scalping Setup:
* Entry: Buy near $108 on a pullback or break above $110.75 with strong volume.
* Target: $112 to $115 for short-term profit.
* Stop-Loss: $107 (below immediate support).
Swing Trading Setup:
* Entry: Accumulate near $96 for a medium-term play or wait for a breakout above $110.75 for confirmation.
* Target: $120 for swing trade gains.
* Stop-Loss: $94 (below major support and 50-day EMA).
4. Where ANET Might Be Headed Next
ANET is showing strong bullish momentum with solid fundamental and technical setups. A breakout above $110.74 could signal a rally toward $115-$120, while a failure to hold above $108 may lead to a retest of $96. Given its growth potential, ANET remains a strong candidate for both scalping and swing trades.
5. Disclaimer
This analysis is for informational purposes only and not financial advice. Please consult your financial advisor or conduct your own research before trading.
CROSSING death cross on numerous indicators 340s in sightThe stochastics show a death cross formulating on the daily and numerous other indicators. It jumped with volatility and more than usual volume; I did declare that it may come down for a correction at some point before I expected it to break through 400, like a cannon. Still a firm supporter of bearish mode and stance.
ANET at new ATH but heads up into $390: key barrier before $421ANET broke out to new All Time HIghs.
Now approaching a significant resistance.
This would be a good place for a retrace.
$ 386.64 - 393.84 is the immediate resistance.
$ 421.10 - 423.73 is the stronger barrier above.
$ 345.33 - 348.18 is the first good support below.
SIDEWAY CHANNEL eventually back in the white boxA correction with the current trend slowing down, possible continuation to 400 until sideway channel pattern breaks.
The Fundamentals Titan that is Arista NetworksNYSE:ANET is a popular tech stock with strong fundamentals while valuation methods such as PE Ratio, Price to sales, etc, might be signaling that it is overvalued, the forecast projections remain strong. Arista Networks has no debt and more then 3 Assets per Liability, With more then double the Cash to cover Liabilities also growing Equity rapidly this company. The Balance sheet is a definite strength for this company!
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Balance Sheet:
Cash: US$6.27b
Debt: US$0
Equity: US$8.43b
Total Liabilities: US$3.19b
Total Assets: US$11.62b
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Valuation:
PE Ratio: 46.63x
Forward PE Ratio: 43.7x
Price To Sales: 18x
Price To Books: 13.5x
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Idea:
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Disclaimer: I am not a financial advisor and in no way am I signaling a sell, buy, or hold opinion on this stock (Arista Networks) I am just giving my personal opinion as a hobby trader, I have no certifications and I am not a financial analyst, I also may be wrong about how I feel about the stock. I want you to do plenty more research on this and the stocks you are interested in because the stock market always holds a lot of risk that may pose different risks and overall be different for each investor and trader. Please do not make opinions based on this idea or any idea. Please be careful! this post is only for conversation.
$ANET: A CANSLIM Case StudyC - Current Earnings:
NYSE:ANET 's recent earnings have been stellar, showing significant increases in EPS. If you're looking for growth, this is your green light. They're not just growing; they're thriving.
A - Annual Earnings:
Over the last year, we've seen Arista's earnings per share skyrocket. This isn't just a one-time spike; it's a trend. Think of it like your favorite series getting better with each season.
N - New Products or Services:
Arista isn't just resting on its laurels. They're innovating with AI-driven networking solutions. Imagine your home Wi-Fi, but for massive data centers, getting smarter and faster. That's NYSE:ANET 's playground.
S - Supply and Demand:
With data centers becoming the backbone of tech, the demand for Arista's products is through the roof. It's like being the only lemonade stand on a hot summer day in a crowded neighborhood.
L - Leader or Laggard:
In the world of cloud computing and data networking, NYSE:ANET isn't just playing; they're leading. They're not just in the race; they're setting the pace.
I - Institutional Sponsorship:
Big players are taking notice. When institutions start piling in, you know there's something special. It's like when all your friends start talking about the same new show; you know it's worth watching.
M - Market Direction:
Here's where it gets exciting. With tech leading the market, and cloud computing being the future, NYSE:ANET is positioned perfectly. If the market's going up, NYSE:ANET might just be leading the charge.
💡 Why NYSE:ANET for CANSLIM?
Growth: They're not just growing; they're setting new standards in growth.
Innovation: With AI and cloud tech, they're not just following trends; they're creating them.
Market Position: In a sector that's only going to grow, NYSE:ANET 's at the forefront.
ANET TradeNYSE:ANET
Short-term Trade :
Entry: Look for a bounce near the $327-$328 level, especially if the price manages to reclaim the 20-period EMA. Consider a short-term buy if the RSI starts rising and the MACD shows positive momentum.
Target: $336 (next resistance at the 50-period EMA) and $340.
Stop-Loss: Below $325.
Medium-term Trade :
Entry: Wait for a confirmed bullish crossover of the MACD and a move back above the 20-period EMA (around $330-$336).
Target: $350-$360 (next key resistance), assuming the price reclaims the 20-period EMA.
Stop-Loss: Below $320.
Long-term Trade :
Entry: Consider buying on dips, especially if the price finds support near $320 or at the 100-period EMA on the weekly chart, which is currently at $281.
Target: $360-$380 within the next 6-12 weeks, assuming the price maintains the long-term uptrend.
Stop-Loss: Below $300 (a break below the 200-period EMA would signal a potential trend reversal).
400 Not too farThere is room to fill, make a new high, and it could close at 400. With all indicators, there is room to breathe, and growth candles are subject to a newer high.
low 300 is a very congested areaThis seems to be on par for a slowdown and a possible reversal, I do see two forming head & shoulder patterns as a key indicator, amongst many others.
ANET 8 percent profitEntry @ current market price i.e 347
Bullish confirmation as it closed above 50day ma and 200 EMA
RSI also above 40
RSI making HH HL
its an easy 8% profit generator
then it will correct due to double top pattern
ANET Gap-Post-Pivot with FIBO-N SupportThe Gap-Post-Pivot with FIBO-N support is an exclusive Ethos pattern known for its high accuracy rates and minimal stop loss requirements. If this projection is confirmed and a partial realization occurs at the first target, the stop loss should be moved from its initial position to the same line where the position was opened.
This way, the journey toward the final target will proceed with reduced risk of losses and preservation of partial gains achieved so far.
Let's see what happens here!
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Stock Pricing Above Fundamentals Ahead of EarningsWeekly Chart: NYSE:ANET reports today after the close.
The stock has a short-term topping formation that is nearly completed. The prior runs went speculative but then corrected. The top is similar to the previous peak and the depth of correction is likely to be similar.
The stock has simply moved beyond fundamental levels. This is NOT likely to turn into a long-term top unless there is something substantially wrong with the company and its products. To become an intermediate-term top, it must have lower highs and lower lows. That is not in the chart at this time.
Ideally, the stock needs to shift sideways to build a much stronger support level to sustain a longer-term uptrend. HFTs are in the mix and may gap the stock on earnings news.
ANET Arista Networks Options Ahead of EarningsIf you haven`t bought ANET before the previous earnings:
Now analyzing the options chain and the chart patterns of ANET Arista Networks prior to the earnings report this week,
I would consider purchasing the 320usd strike price Calls with
an expiration date of 2024-8-16,
for a premium of approximately $17.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
ANET H&S Pattern breakdown possible , US Stock325 below strong support break possible
Gap fill possible
322/320/316/313 target
Also form H & S Pattern , IF Breakdown projection level is 275
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.
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!
