Fortinet Jumps 3.98% To $84.21 Completing 5.55% Three-Day Rally

Fortinet (FTNT) concluded the latest session at $84.21, marking a 3.98% gain and completing a three-day rally totalling 5.55%. This recent strength warrants technical scrutiny across multiple indicators to gauge sustainability and direction.
Candlestick Theory
Recent price action shows resilience. The latest session formed a robust bullish candle closing near its high ($84.21 vs. high $84.7), rejecting the prior session's indecisive Doji (Sep 18). Immediate resistance is evident at the Sep 19 high ($84.7), with a break potentially targeting the $86-$87 zone last tested in mid-August. Key support lies at the psychological $80 level, reinforced by recent consolidation lows around $79.70-$79.80. The absence of reversal patterns like Bearish Engulfing or Shooting Stars near resistance favors continuation bias.
Moving Average Theory
A critical development is the price reclaiming the 200-day Moving Average (~$82.20 based on the dataset), shifting it from resistance to dynamic support. The 50-day MA ($80.50) recently crossed above the 100-day MA ($79.90), confirming a bullish near-term structure. The 50-day/100-day/200-day stack now exhibits a constructive order (50 > 100 > 200), suggesting an emerging intermediate uptrend. Sustained trading above the 200-day MA is technically positive.
MACD & KDJ Indicators
The MACD (12,26,9) is converging towards a potential bullish crossover, with its histogram showing reducing bearish momentum. This aligns with the price recovery since the August low ($75.30). The KDJ indicator, however, presents nuance: the %K (89) and %D (85) are deeply overbought (>80), signaling stretched near-term momentum and heightening susceptibility to consolidation or pullback. Divergence is noted here – MACD suggests improving momentum, while KDJ warns of exhaustion.
Bollinger Bands
The bands have contracted significantly since the extreme volatility surrounding the August 7th sell-off, indicating diminished near-term volatility. Price closed above the 20-period SMA (midline ~$81.60) on Sep 19th, a bullish signal suggesting a breakout from equilibrium. Upper band resistance sits near $85.50, while the lower band ($77.50) provides key downside reference. This breakout from contraction supports the continuation of the recent up move.
Volume-Price Relationship
Volume spikes accompanied the major August decline (notably Aug 7: 47.4M shares) and the subsequent mid-August recovery attempt, confirming capitulation and initial accumulation. Volume during the current three-day rally (Sep 17-19: ~22.8M total) has been lower than during the preceding rise from the $76-$78 base in September. This divergence raises a mild caution flag about the conviction behind the latest move, requiring confirmation via sustained price gains or increasing volume on upward thrusts. Resistance breaks need volume validation.
Relative Strength Index (RSI)
The 14-day RSI has climbed into the upper range (~64), reflecting building momentum but not yet overbought (below 70). Notably, RSI established a higher low in August/September compared to its June low while price made a significantly lower low ($75.30 vs ~$92), generating a bullish divergence that preceded the current rally. While not overbought yet, proximity to the 70 level combined with KDJ overbought readings warrants monitoring for potential consolidation.
Fibonacci Retracement
Applying Fibonacci to the significant decline from the ~$110 high (approx Jun 17) to the $75.30 low (Aug 7), key retracement levels emerge: 23.6% ($83.90), 38.2% ($88.60), 50% ($92.65), and 61.8% ($96.70). The Sep 19th close ($84.21) sits just above the 23.6% level ($83.90), turning this into initial support. Overcoming this hurdle targets the 38.2% ($88.60). Confluence exists at the $85-86 zone near the 23.6% level and prior swing highs (Aug 18-20).
Synthesis & Confluence
Significant confluence supports a bullish bias: the constructive MA alignment, breakout above the 200-day MA and Bollinger midline, MACD convergence, and price holding above the 23.6% Fib level. The primary concern is near-term exhaustion signaled by the overbought KDJ and modest volume on the recent ascent, suggesting potential consolidation above support ($82.20 / 200-day MA and $80 psychological) before challenging resistance at the August swing highs ($85-$87) and the 38.2% Fib level ($88.60). A decisive close above $87, preferably on increasing volume, would strongly reinforce bullish conviction and target the $90-$92 resistance zone. Downside risk intensifies below $79.70.