• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Nutanix Is Likely to Decline Further Before Attempting to Bottom

NTNX has been in a downtrend the past twelve months with the stock losing two-thirds of its value.
By BRUCE KAMICH
Aug 02, 2019 | 02:35 PM EDT
Stocks quotes in this article: NTNX, VMW

During the fast-paced Lightning Round of Mad Money Thursday night, Jim Cramer was asked about Nutanix Inc. (NTNX) : "They are competing with VMware (VMW) . I'm struggling to see the bottom."

Looking for bottoms in stocks is my thing along with tops so let's check out the charts of NTNX.

In the daily bar chart of NTNX, below, we can see that prices have been in a downtrend the past twelve months with the stock losing two-thirds of its value. Ouch.

A number of gaps to the downside have punctuated the decline. NTNX is trading below its declining 50-day moving average line and the weakening 200-day line.

The daily On-Balance-Volume (OBV) has been in a decline, which tells us that sellers have been more aggressive.

In the lower panel is the 12-day price momentum study which shows higher lows from March to Jun to July while prices have made lower lows. This tells us that the decline is slowing and that creates a bullish divergence when compared to the price action. It may take more than this divergence to help NTNX formed a bottom.

In the weekly bar chart of NTNX, below, we can see that prices have been in a downtrend and below the declining 40-week moving average line. The weekly OBV line has been in a decline since early 2018 suggesting a significant amount of distribution (selling).

The 12-week price momentum indicator is showing equal lows in May and July which is a bullish divergence versus price.

In this first Point and Figure chart of NTNX, below, we can see a nearby potential upside price target of $22-$23.

In this second Point and Figure chart we used closing data and the software is projecting a downside price target around $13.

Bottom-line strategy: With more risk on the downside ($13) than potential on the upside ($22-$23) I would not look to be a buyer of NTNX.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Software & Services | Technology | Technology Hardware & Equipment | Mad Money

More from Stocks

Thursday's Action Was Promising For Those Awaiting a Bear Market Bounce

Bob Byrne
May 27, 2022 8:30 AM EDT

The post-earnings rebounds of Snowflake and Nvidia plus the rally in the major indexes gave traders reasons for hope, at least in the near term.

Holding Up a Mirror to Ulta Beauty and Seeing a Tricky Technical Position

Bruce Kamich
May 27, 2022 8:01 AM EDT

Solid first-quarter results are sending shares of the beauty products retailer higher, but the question is whether that strong move will hold.

Don't Change the Channel on Roku

Bruce Kamich
May 27, 2022 7:37 AM EDT

Here's why the shares could stage a recovery.

Be Adaptable, Trade Tactically, Pretty Sweet Earnings, Death of Crypto?

Stephen Guilfoyle
May 27, 2022 7:36 AM EDT

Plus, to survive in this market you must be a jack of all trades and understand both the fundamental and technical sides of the investing coin.

Put Some Manpower to Work

Paul Price
May 27, 2022 7:00 AM EDT

As the markets start picking up, let's look at how to play MAN.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login