Tech has been the undeniable powerhouse of the rally. But if a stock doesn’t perform, sometimes it’s best to part ways. Especially with swing trading. Here’s why we got out of ANET stock before it fell further.
X
ANET Stock Shows Promise During Base
After finding support at its 200-day line (1), we saw Arista Networks (ANET) rally over 30% in just over a week’s time (2). It was enough to shoot its relative strength line near its March high.
While the Nasdaq composite pulled back to its 21-day exponential moving average, ANET stock fell below its 50-day line (3) leading to the relative strength line falling into a downtrend.
A late June rally saw one final pause in ANET stock where the relative strength line held up better. We used the June 30 high (4) as a potential entry. When ANET stock crossed that high (5), we put it on SwingTrader.
Interested in the story behind the…
