AI Trading Robot Generates 5.54% PROFIT for FTNT last week: A Technical Analysis
The impressive profit margin generated by an AI trading robot for Fortinet Inc. (FTNT) last week has set a buzzing precedent for the ongoing development and incorporation of AI in financial trading. The scenario underlines the pivotal role AI trading algorithms play in modern investment strategy formulation, and it provides a fascinating case study for evaluating the technical factors driving this result.
The AI algorithm's success with FTNT trading is not without a solid foundation. It occurred against a backdrop of encouraging technical indicators, including a key bullish crossover in moving averages. Let's delve further into these details.
Understanding the Moving Averages
On May 11, 2023, the 10-day moving average (MA) for FTNT crossed bullishly above the 50-day moving average. This technical event, often termed a 'golden cross', is widely considered to be a robust bullish indicator by traders and analysts alike. The event is predicated on the theory that short-term momentum is gaining enough strength to drive the longer-term trend upward.
Historically, when the 10-day MA of FTNT has crossed above its 50-day MA, a follow-up bullish price movement has been observed. A scrutiny of past data reveals that in 14 out of 15 instances, the stock has continued its upward journey over the subsequent month following such a crossover. This implies a high probability rate of 90% for a continued upward trend, offering substantial weight to a bullish thesis.
Considering the high reliability of this bullish signal, the AI trading robot's success with FTNT can be better understood. The AI algorithm, leveraging its machine learning and predictive capabilities, would have recognized the impending bullish crossover and taken a long position on FTNT.
The application of AI in trading holds numerous advantages. It can process and interpret large data sets with speed and accuracy that are humanly impossible, identify patterns, and make predictions based on a variety of inputs. Furthermore, AI systems can be trained to learn from the success or failure of past trades, thereby continually refining their decision-making processes and improving future trade accuracy.
In this case, the AI trading robot's decision to capitalize on the bullish signal from the moving average crossover resulted in a profitable week with an impressive 5.54% profit margin for FTNT.
The above case of the AI trading robot generating a 5.54% profit for FTNT underscores the profound impact AI is having on the financial trading sector. It serves as an affirmation of the predictive capabilities of technical analysis and the power of AI in leveraging these indicators for profitable trading.
FTNT in downward trend: price may drop because broke its higher Bollinger Band on August 30, 2023
FTNT broke above its upper Bollinger Band on August 30, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 48 similar instances where the stock broke above the upper band. In of the 48 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 18, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on FTNT as a result. In of 99 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for FTNT turned negative on September 21, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FTNT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FTNT's RSI Oscillator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FTNT advanced for three days, in of 365 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 337 cases where FTNT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FTNT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (142.857) is normal, around the industry mean (21.026). P/E Ratio (43.668) is within average values for comparable stocks, (152.725). Projected Growth (PEG Ratio) (1.863) is also within normal values, averaging (2.638). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (9.259) is also within normal values, averaging (74.081).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
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Industry PackagedSoftware
FTNT and
Correlation & Price change
A.I.dvisor indicates that over the last year, FTNT has been loosely correlated with PANW. These tickers have moved in lockstep 59% of the time. This A.I.-generated data suggests there is some statistical probability that if FTNT jumps, then PANW could also see price increases.
| Ticker / NAME | Correlation To FTNT | 1D Price Change % | ||
|---|---|---|---|---|
| FTNT | 100% | -1.17% | ||
| PANW - FTNT | 59% Loosely correlated | +0.11% | ||
| OTEX - FTNT | 57% Loosely correlated | -2.59% | ||
| DOCN - FTNT | 56% Loosely correlated | -4.06% | ||
| ALTR - FTNT | 55% Loosely correlated | -0.30% | ||
| GDDY - FTNT | 52% Loosely correlated | -1.69% | ||
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