Here’s your trade on Arista Networks ($ANET) – March 17, 2023
I want to look at Arista Networks ( NYSE: ANET ) today. But first, we want to be in Large-Cap techs. You don’t want to be messing around with the banks. You don’t want to be trying to do dumpster-diving on anything that you think that has gone down enough. When things get really bad, they really don’t go down enough, they just kind of keep going until you have had enough.
So don’t get into those, focus on the things that are working in an environment where you really feel like nothing is working. That’s not just the way to survive, that’s the way to thrive. The bottom line is, you want to be in stuff that is working, and that is not going down because of whatever the news event is.
Arista Networks ( NYSE: ANET ) is a company that is not the largest cap stock in the world but look at what the institutions are doing here. Banking problems, whatever, it doesn’t matter. Here on the daily chart look at the last 5 days. This was last Friday, a down day. This was the whole Silicon Valley stank issue. It fell, fine. Monday, ONG, just like everything else, it gapped down, and it never looked back, 5-days in a row, boom, boom, boom, boom, boom.
And where are the closes, relative to their intraday highs? Where does the stock close every day? Well, I will show you, pretty close to the top of the range, maybe kind of mid-line. The top, top, top, top, so these last 4 days the stock has closed here, just fractionally below the intraday high. The same thing here, here noticeably so but probably in the top 20 percent, maybe the top 10 percent.
And then we’ve got a similar thing here. And then look at the volume here, you’ve got this big bunch of volume spikes that just keeps going up and up. This is institutional buying. And then you say, all right, let me get a better look here. This is a stock that has been trading sideways for something like 15 months. This is how I would measure where I think this stock can go.
We look at this, we’ll say 150.00 is the break-out point. And then I will snap a line down here at the low, 90.00. So we got 60 points between the low and the breakout. And so on a typical technical analysis classic measured move thing, what you do is, you say okay, the difference between the top and the bottom is $60.00.
So now that we got a breakthrough, a breakout, breakthrough, whatever. So where is this going to go, $60.00? That takes us from 150.00 to 200.00 to 210.00. And so this, right here, is my target on the stock, $210.00. It has got to get through 200.00 first so why don’t we just shoot for that?
If you hold Arista Networks ( NYSE: ANET ), you have got to hold this for a while. They report earnings in early May, I seriously doubt it is going to get here before then, this is a stock on the move. And only stocks that are being bought by institutions do this, this is what it is and you want to be there.
It beats the hell out of some cheesy regional bank that you are hoping is not going to go out of business, and somebody is going to buy it, and you are going to be a superstar. No, don’t go there. Just be boring, buy this, look at NVIDIA ( NASDAQ: NVDA ), even Microsoft ( NASDAQ: MSFT ), all the kind of boring stuff that I typically don’t talk about, but that is really where the money is.Free Chart