Josh Brown Uses Okta's $190 Moving Average as a Trade Threshold

Ritholtz Wealth Management CEO Josh Brown identified Okta's rising 50-day moving average at $190 as a key risk level after tying the stock's pullback to broader selling across cybersecurity shares.

Brown's Oct. 29 chart analysis centered on the level he would use before considering a long position. “If I'm getting long here, I'm using $190 as an obvious stop,” he said.

His thresholds differed by time frame. In Brown's framework, traders could treat a daily close below $190 as an exit signal, while investors could wait for a weekly close under the average. Okta's lows were $185 on Oct. 16 and $184 on Oct. 20, both beneath the level he identified.

Brown also marked $235 as an upside threshold, saying a break above that price could signal further upside. He said a close below $190 would put the advance that began with a May gap in question.

Okta provides workforce and customer identity software. Its latest reported quarter ended July 31, 2026, with revenue up 11% year over year to $805 million, non-GAAP diluted earnings of $1.05 per share and free cash flow of $227 million. Its fiscal 2027 forecast called for revenue of $3.216 billion to $3.226 billion and non-GAAP diluted EPS of $3.90 to $3.94.

Okta CEO and co-founder Todd McKinnon said, “As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do.”

Fortinet's third-quarter results were the sector backdrop Brown cited. The quarter ended Sept. 30, and revenue totaled $2.08 billion, up 20% year over year; product revenue rose 37% to $765 million, and billings climbed 29% to $2.34 billion. GAAP diluted earnings were $0.86 per share and non-GAAP diluted earnings were $0.91.

On Oct. 28, Fortinet raised its full-year 2026 revenue outlook to $8.125 billion to $8.215 billion. For the fourth quarter, it forecast revenue of $2.155 billion to $2.245 billion and non-GAAP EPS of $0.93 to $0.95.

The analysis follows Okta's Oct. 16 share decline and Fortinet's Oct. 28 results.