In an era of increased market volatility and unpredictable economic cycles, it is an impressive feat to see the stock of Cloudflare Inc., represented by the ticker symbol NET, generating a remarkable 25.01% return, showcasing the potential of tactical swing trading within a choppy market. An optimal blend of technical and fundamental analysis (TA&FA) coupled with market-neutral strategies has been pivotal in these unprecedented gains.
In the wake of recent developments, the momentum indicator for NET turned positive, pointing towards a burgeoning upward trend. This particular shift was recorded on July 10, 2023, when the Momentum Indicator crossed the zero level, a crucial benchmark for traders. This change generally signals a potential turning point where the stock might be entering a phase of renewed upward momentum.
For traders and investors alike, this indicator serves as an important tool to gauge the timing of their investment strategies. A positive momentum indicator often translates into buying opportunities for the stock or buying call options, capitalizing on the anticipated upward movement. This approach can help traders generate returns even in choppy market conditions.
To validate this hypothesis, Tickeron's A.I.dvisor embarked on an empirical journey where it reviewed 66 similar past instances of the Momentum Indicator turning positive. Astonishingly, in 60 out of these 66 instances, the stock was seen to move higher in the subsequent days. Therefore, the odds of a similar upward move in the wake of the current positive momentum stand at an impressive 90%.
This bullish trend confirmation underlines the potency of the TA&FA approach in swing trading strategies and reaffirms the viability of market-neutral strategies in choppy market environments. It's a classic example of how smart trading strategies, coupled with robust technological capabilities like AI, can harness market opportunities and generate substantial returns.
NET's recent performance reaffirms the potential of swing trading and the usage of momentum indicators in realizing significant gains, even within the realm of choppy markets. While the financial market's roller coaster ride continues, the recent momentum shift in NET signals a beacon of hope for traders. The Market Neutral Strategy (TA&FA) has thus far successfully navigated the choppy waters, and with a 90% probability of a continued upward move, the future prospects seem promising.
The Aroon Indicator for NET entered a downward trend on August 23, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 118 similar instances where the Aroon Indicator formed such a pattern. In of the 118 cases the stock moved lower. This puts the odds of a downward move at .
NET moved below its 50-day moving average on September 15, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NET declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where NET's RSI Oscillator exited the oversold zone, of 17 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 45 cases where NET's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on September 29, 2023. You may want to consider a long position or call options on NET as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NET just turned positive on September 29, 2023. Looking at past instances where NET's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where NET advanced for three days, in of 271 cases, the price rose further within the following month. The odds of a continued upward trend are .
NET may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NET’s price grows at a higher rate over the last 12 months as compared to 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 (32.895) is normal, around the industry mean (19.752). P/E Ratio (0.000) is within average values for comparable stocks, (153.005). Projected Growth (PEG Ratio) (2.010) is also within normal values, averaging (2.652). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (18.450) is also within normal values, averaging (74.348).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NET’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company, which engages in the provision of cloud-based services to secure websites
Industry PackagedSoftware
A.I.dvisor indicates that over the last year, NET has been closely correlated with DDOG. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if NET jumps, then DDOG could also see price increases.
Ticker / NAME | Correlation To NET | 1D Price Change % | ||
---|---|---|---|---|
NET | 100% | -0.08% | ||
DDOG - NET | 73% Closely correlated | +2.38% | ||
TEAM - NET | 72% Closely correlated | +2.32% | ||
CFLT - NET | 71% Closely correlated | +2.46% | ||
MNDY - NET | 70% Closely correlated | +0.19% | ||
SNOW - NET | 70% Closely correlated | +1.09% | ||
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