We do not have much trading history of the cloud computing company Nutanix, Inc. (NTNX) but there are some technical clues and signals we can glean from the latest charts. Let's check.
In this daily bar chart of NTNX, below, we can see that prices have tripled in the past year. Impressive. Prices have recently tested the flat 50-day moving average line. The slower-to-react 200-day moving average line has been positive since December and we can see a bullish golden cross of the 50-day and 200-day averages in early October.
The daily On-Balance-Volume (OBV) line has been up-sloping the past 12 months but has leveled off since March. In the lower panel is the 12-day price momentum study or indicator.
We can see lower highs or weaker momentum readings from March to May and this is a bearish divergence when compared to the price action. The pace of the rally has been slowing and this can sometimes foreshadow price weakness ahead.
In this weekly chart of NTNX, below, we only go back to September of 2016. Prices are above the rising 40-week moving average line.
The weekly OBV line turned positive in April of last year but like the daily line is more neutral in recent months.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has narrowed and we could soon see a take profits sell signal.
In this Point and Figure chart of NTNX, below, we can see that prices met a downside price target of $52.
Bottom line: It is always tricky when working with limited price data. With neutral volume/OBV information and a bearish divergence from our momentum study I would take a neutral/sideways stance on NTNX for now. NTNX was just $15 a few months ago and recently it touched $60, so a time out or sideways consolidation would be welcomed.
