PPR - FTNT Flashing Pocket Pivot Volume Signature on Breakout from 4-Week Flag

Published : June 1 2011 at 13:04 ET

Even in the midst of the market sell-off today, Fortinet, Inc. (FTNT) is flashing a pocket pivot volume signature as it breaks out of this four-week base it has formed since gapping up after earnings on April 28. Volume is currently running at 120% above-average so this is certainly valid for a flag breakout, despite the fact that the stock, like VMW, is extended from its 10-day moving average.

However, in both of these cases, FTNT and VMW, what we note is the strength in the face of a very weak tape where these stocks are breaking out of bases, FTNT a short 4-week flag and VMW a big cup-with-handle formation, on pocket pivot volume signatures. If by some chance the market is able to stage some sort of "QE turnaround two-step" these would be stocks to have your eye on as they display strength in an otherwise feeble market day so far.

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