F5 Networks

One stock that's starting to break out is F5 Networks ( FFIV), a provider of technology that optimizes the delivery of network-based applications and the security, performance and availability of servers, data storage devices and other network resources. This stock was a big market leader in 2010, and it's off to a super start in 2011, with shares already up over 10%. Traders love to turn to this high-growth name for a play on the booming trend towards applications for smartphones and tablet computers.

If you take a look at the chart for F5 Networks, you'll see that the stock has started to trade above some previous overhead resistance at around $143.75 a share. The last time that F5 Networks hit $143.75 was back in December, and right after hitting that price, the stock traded all the way down to $129 a share. Shares of F5 Networks quickly found support at $129 and have now powered back all the way up to close over $143.75 and into breakout territory.

What's so great about the breakout action in F5 Networks is that it shows that investors who love to buy high-growth stocks still want to be in this market leader. This is a healthy sign for the markets, and it's a healthy sign for F5 Networks. What investors need to watch for now is for up-day volume on FFIV to start coming in better than the three-month average daily volume of 2.6 million shares, which will increase the probability of the stock going much higher in the near future.

As of right now, the volume on recent up days hasn't been tracking in as strong as I would like to see it, or simply higher than 2.6 million shares. The move on Thursday that saw the stock break out only saw volume of around 1.7 million shares. However, the price and trend for FFIV is what matters the most, and those two key categories are currently acting very bullish. Market players should now look for FFIV to close above the breakout price of $143.75 on not just a daily basis but also a weekly basis.

If that does indeed happen, then I think this stock will set up nicely to trade significantly higher in the next couple of months. I don't think it's a stretch to say that this stock could trade up toward $200 a share if the uptrend remains intact.

Navellier & Associates is making a big bet on F5; the stock comprises 3.1% of the total portfolio. F5 was one of the top best-performing S&P 500 stocks as well as one of the five tech stock winners of 2010. With an A- buy rating from TheStreet Ratings, F5 is one of the top-rated communications equipment stocks.

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