During the course of my weekend preparation process, I took a good hard look at a wide range of Weekly charts – set with the 65 day simple moving average (SMA). What I found was a significant percentage have price currently testing this SMA from above or below.
Within this process, I did some calculations on several of these stocks that have had some price movements in the past that were significantly higher or lower than this 65 SMA – but had reversed course to come back for a test.
One such stock is FFIV (F5 Networks). On the Weekly chart below, you can see that it has spent some quality time getting to know the 65 SMA after breaching above it in late October 2011:
The past 3 weeks, price has now begun to move up and away from the 65 SMA. Below is one set of calculations that I did showing the huge gap that existed between price and this 65 SMA back in early 2011:
Based on this data, one perspective would be a measured move (MM) to 154.63 in the future as of 2/3/2012 prices. Just one way to look at it after looking to the left on the chart – doing some Target Practice.
Enjoy the SuperBowl. And the commercials. And the halftime show. Be safe.