Fortinet Inc (NASDAQ: FTNT) the global leader in cybersecurity is facing some turbulence as it will likely miss Wall Street’s estimate of $5.4 billion for the year.

Despite the good start of year with a +68% rally making new all time highs, the stock erased all those gains in the second half of this year. Let’s dive into the technical chart and understand the current Elliott Wave structure taking place.

FTNT Monthly Elliott Wave Chart 11.9.2023

The above chart is a representation for the entire Monthly cycle for FTNT. We can see how an impulsive 5 waves rally off the lows ended wave (I). Since the July 2023 peak, the stock started a larger degree correction of the entire cycle and it’s looking to unfold as an (abc) Zigzag structure within wave (II). The pullback is still in progress in wave “c” and it’s looking for the equal legs area $40.49 – $24.93. Once it reaches that area, the stock will be looking to turn higher from there to resume the bullish trend.

Here is the basic Elliott Wave Theory Pattern

The graph above shows the five waves advance, and each leg subdivides into a lower degree five waves. It is a fractal pattern which repeats in each degree from the Grand Supercycle until the lower degree of the subminute. The chart is clear; each cycle is in five waves, and each pullback in three, but always in the direction of the trend.

In conclusion, the long term technical picture for FTNT remains bullish and investors should be on the lookout for the blue box area as a monthly buying opportunity.

 

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Fortinet Inc (NASDAQ: FTNT) is a global leader in cybersecurity solutions. The company has a strong track record of growth and innovation, and it is well-positioned to continue to dominate the cybersecurity market in the years to come.

FTNT’s products and services are used by businesses of all sizes to protect their data and systems from cyberattacks. The company’s solutions are known for their comprehensiveness, ease of use, and affordability.

With a 36% year-to-date increase, Fortinet (FTNT) shows strong technical support for a bullish trend. Examining the daily Elliott wave structure will help us gain a better understanding of the current view and prepare for the upcoming trend.

FTNT Elliott Wave Daily Chart

The stock underwent a year-long correction with wave (IV) from December 2021 to November 2022, followed by a new impulsive rally with the potential for another move higher in wave ((5)) of I. The target area for this move higher is $71.2 – $74.6, after which a 3-wave pullback is expected to occur to correct the daily cycle.

As long as the structure remains corrective, the potential correction in wave II is anticipated to present a buying opportunity against the low of $42.71. A break above the 2021 peak and into new all-time highs would further strengthen the daily view and create a bullish sequence to support the upside within the weekly cycle.

In conclusion, the overall technical picture for FTNT remains supportive, and more upside is expected in the mid-term. Investors should be on the lookout for pullbacks as buying opportunities and we recommend waiting for corrective structures in 3, 7, or 11 swings in the coming months.

 

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