This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

What?!

Has one quarter of the year flashed by?

Due to the extremely bullish sentiment, most stocks in the US stock market have risen considerably with hardly any rest.

As we enter the most bullish window (based on historical data), what’s 1 stock that you should be eyeing for a position trade?

Join me for a journey to find out whether Fortinet is a worthy candidate.

Brief History of Fortinet

Source: fortinet.com

Fortinet is a young cybersecurity company founded in 2000.

Soon after its founding, Fortinet introduced its first few products.

Success came chasing and the company expanded into Asia, Europe, and North America.

Through acquisitions and innovation, the company grew the number of products to become the business it is.

How is its financial health?

Let’s find out in the next section.

Business Model and Financials

The first indication of a healthy company is growing revenue.

Therefore, let’s have a look at its total revenue (bar in blue) over the years.

It’s evident that Fortinet’s total revenue has been growing every year.

Is there another data set to focus on?

Yes! Let’s now focus on its net income (bar in orange).

Its net income has also been growing each year, with the only exception in 2019.

Based on the trend of its revenue and net income, Fortinet’s business is likely to continue growing at a rapid pace.

Enjoying strong business fundamentals, are market participants bullish on the stock of Fortinet?

Technical Analysis on Fortinet (NASDAQ: FTNT)

To answer that question, let’s turn to its chart.

Its share price has been in a strong uptrend since Nov 2023. This can be inferred from the number of blue (solid and outlined) candles outnumbering those in red (solid and outlined).

The next question is “Is this uptrend sustainable for a position trade?”

All you need are the 2 main indicators that are on the chart shown above – the green arrow and Trend Impulse Factor.

When a green arrow appears under the latest candle, it signals that a fresh uptrend is here.

You’ll want to buy while the uptrend is still fresh!

Next, you’ll want to pay attention to the color of the bar of the Trend Impulse Factor indicator.

When its bar is dark green, it signifies momentum, giving you greater reassurance that there’s more to come from this stock.

Do you see the appearance of a green arrow under its latest candle?

However, the color of its Trend Impulse Factor bar isn’t dark green yet.

This indicates that buying shares of Fortinet for a position trade isn’t here yet. You may want to keep this stock in your watchlist and fire when both indicators appear simultaneously.

Yes, I think that this could happen soon!

Conclusion

Source: unsplash.com

Cybersecurity has become more mainstream and sought after with the rise of data mining and artificial intelligence.

Fortinet provides cybersecurity solutions and is a beneficiary of this demand.

It’s also clear that the market thinks highly of Fortinet.

Besides, Fortinet’s chart (coupled with our proprietary indicators) suggests that buying its shares for a position trade could soon be a possibility.

Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won't have to feel in the dark and make wild guesses.

Therefore, saving this stock in your watchlist and monitoring it over the next few weeks is a good idea.

What are your thoughts?

Share your thoughts with me below!