Long-Term Bullish Trendline Could Help Fortinet Stock Break Out

Core Viewpoint - Fortinet (FTNT) stock is experiencing positive momentum due to a rally in the tech sector, driven by strong earnings from Taiwan Semiconductor Manufacturing (TSM) [1] Group 1: Stock Performance - FTNT shares are set to end a three-day losing streak but have a 26.8% deficit over the past three months, recently hitting a two-month low [1] - The stock has support at the $76 level, which has previously contained pullbacks in August, September, and November [1] - FTNT is currently within 3% of its 40-month moving average, having closed above this trendline for the past five months [2] Group 2: Historical Trends - Historical data shows that when FTNT is within 3% of its 40-month moving average, the stock has risen one month later 86% of the time, with an average gain of 3.1% [2] - Over a three-month period, FTNT has averaged a 10.9% gain with a 71% win rate following similar signals [2] Group 3: Analyst Ratings - Current analyst ratings for FTNT include 30 "hold," 7 "strong buy," and 4 "sell" or worse, indicating a cautious outlook among analysts [4] - A surge in FTNT stock could prompt some brokerages to adopt a more bullish stance [4] Group 4: Volatility Assessment - FTNT has a Schaeffer's Volatility Scorecard (SVS) of 21 out of 100, suggesting it has experienced lower volatility than its options pricing over the past year [5] - This low volatility indicates that a premium-selling strategy may be advantageous moving forward [5]