NTNX closes within previous day's range
Nutanix Inc. (NTNX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NTNX finished Thursday at 17.62 losing $0.46 (-2.54%), strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NTNX as at Mar 26, 2020):
Thursday's trading range has been $2.07 (11.05%), that's slightly above the last trading month's daily average range of $1.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for NTNX.
Despite a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on March 12th, NTNX actually gained 9.67% on the following trading day.
Prices are trading close to the key technical support level at 16.31 (S1).
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nutanix. Out of 34 times, NTNX closed higher 61.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 67.65% with an average market move of 1.93%.