Watch These Fortinet Stock Price Levels Amid Post-Earnings Surge

Fortinet (FTNT) shares surged in premarket trading on Wednesday after the cybersecurity solutions provider raised its full-year revenue outlook, as enterprise customers increase spending to protect their data and applications from cyberattacks.

The company’s better-than-expected quarterly results come on the heels of two recent acquisitions as Fortinet aims to broaden its product offerings amid customers shifting their IT operations from local networks to cloud-based platforms. Last week, the cybersecurity giant said it had completed its buyout of cloud-native application protection platform Lacework, while on Tuesday it announced it had purchased Next DLP, a firm that specializes in insider risk and cloud data protection.

Fortinet shares were up 15% at $64.18 about two hours before Wednesday’s opening bell.

Below, we take a closer look at the Fortinet chart and use technical analysis to point out key price levels to watch out for.

Earnings Set to Reverse Bearish Technicals

Since setting a record high in July last year, Fortinet shares have essentially remained within a 37-point range, allowing traders to catch significant swings on both sides of the market. 

More recently, the 50-day moving average (MA) crossed below the 200-day MA in late June to form a bearish death cross signal, with the price continuing to trend lower leading into the company’s quarterly results.

However, Fortinet’s upbeat earnings report looks set create a bullish stock gap on the chart that could lead to a longer-term upside reversal.

Monitor These Price Levels Amid Further Upside

Looking ahead, investors should keep an eye on three key price levels that Fortinet shares could test during a post-earnings rally.

The first sits around $62.50, a location on the chart where the price could encounter overhead resistance from a trendline that links several important peaks throughout the sideways trading action between February 2023 and May this year.

Further buying could see a move up to the $69 level, where the shares may face selling pressure near the prominent April 2023 swing high, which also aligns with a range of similar price points over an 11-month period from May last year to April this year.

The final level to watch lies at $73.50, where the price may run into resistance around a trendline connecting the mid June 2023 high with a triple top pattern that formed on the chart between February and April.

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As of the date this article was written, the author does not own any of the above securities.