Arista Network (ANET): can it bounce from the support

• Anet price has declined -3.31% in a week but surged 5.32% in a month and 56.33% in a year.
• Anet price is trading above both the important EMAs i.e. 50 and 100.
• Anet’s stock revenue has risen significantly over the years along with the net income.

Market capital of Arista Network- $57.11 Billion  The current market price of Arista Network – $184.60 Arista’s price is trading near the 52-week high level i.e. $198 which it created on 1 September. Since then the price went to a consolidation phase at the upper level which is a good sign for the buyers as the price is not witnessing any sharp downside. Price is rising slowly towards a higher level. The revenue of the company has risen significantly in the last 2 years as the revenue jumped by over 48.62% in the previous year. The net income has also risen at a good pace as the net income has risen at 32.51% and 60.84% in two consecutive years i.e. 2021 and 2022. EPS has also followed the same path. Arista Network’s net debt is standing at -2.96 billion which is not a good sign but the cash and cash equivalent is more than the net debt which makes it a negligible subject. If we talk about the dividend part, the company has never paid any kind of dividend to its shareholders. The company is doing good in the margin aspect as the margins are increasing year on year.

Technical Analysis on the daily chart

The company is comfortably trading above the important EMAs of 50 and 100 which are currently present at $169 and $179 levels. The angle of the EMA is greater than 30 degrees which indicates that the price is in a very strong bullish momentum the EMA will act as a strong support because of its angle. The price has broken a strong resistance area near the $145- $150 levels, which can now act as support levels for the stock. The price has also broken the ascending triangle pattern on the upper side which also indicates that the stock is bullish as of now. The further downside the crucial support level for the stock is present near the $85 level.

On the hourly time frame the stock is forming a rising wedge pattern and currently trading near its support level. The resistance for this channel is present at $202 and the support is present at $183 levels. The important support is present near the $148 level and the price has tested it twice before moving up. The relative Strength Index (RSI) is currently placed at 27.58 level which is termed as an oversold region and the price is expected to go up from this level. The volume is also flat which means the buyers are absorbing the volume and some new buyers can lift the price from this level.

Conclusion

As the price is near its support level in the 1-hour time frame the Relative Strength Index (RSI) is also in an oversold trajectory, which indicates the price will face difficulty at this level and buyers can easily lift the price. The only resistance the price can face is near the $212 level

Technical level

• Resistance – $212
• Support – $183

Disclaimer

The analysis is done for providing information through technical analysis and no investment suggestions are given in the article to be made by investors. The coins are unpredictable so investors should have proper knowledge. Cryptocurrencies are highly volatile and risky. Investment should be made with proper technical analysis.