Chart of the Day: Holding Firm at a Reliable Support Zone

The Market Wasn't Logical Going Up, So We Shouldn't Expect That Going Down

Economic uncertainty, higher volatility and oil prices catching all the headlines has made it difficult for the better companies to move upward. Arista Networks (ANET) recently had a beautiful earnings report with strong guidance, but still cannot catch a break.

For its part, ANET continues to flutter around a range that covers the $120-150 level. Since breaking down last fall, the stock has been mired in that range.

We can view that different ways. A long, drawn-out base is good for a stock ready to bounce higher, as it is said "the longer the base the higher the space." On the other hand, we could argue the stock is just not finding buyers at higher prices, which is problematic.

If the company reports strong earnings and still cannot attract funds, then something more systemic is the issue. Perhaps the sector or group weakness can explain the hands-off approach.

In any event, the indicators are mixed with strong money flows and a rising stochastic, but MACD (moving average convergence divergence) on a sell signal while price bars are pink, which is cautiously bearish in the GoNoGo composite of indicators. We'll see if this name can recover, at least to make a run back to the high part of the range in the $140s.

We like Arista Networks in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."

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At the time of publication, TheStreet Pro Portfolio was long ANET.