Here’s your trade on Nutanix ($NTNX) (November 27, 2019)NTNX
I thought I would show you Nutanix ( NASDAQ: NTNX ); the bottom line here is this stock here is in a really good situation. You can see $30.00 was the top of the volatility squeeze this was the low here. This stock had been trading sideways, kind of a nice reverse head and shoulder pattern; where we would look at this being the left shoulder, a lower low, then a lower low still, which is the head, and then a higher low, which then when you see a higher low like this you look back and say, “Oh, well this is the head and that’s the left shoulder.” You don’t really know it’s a head and shoulder pattern until you see the right shoulder, that’s for inverse as well as the typical head and shoulder pattern.
Then you get the neckline, which is right here and then the stock broke out. It runs up to 30.00 then you could even say, “Well, maybe we got a more complicated shoulder. Maybe it’s orthopedically challenged and needs replacement, I don’t know.” The stock broke out above $30.00 here, really, really strong. So it breaks out above $30.00, solid earnings and then the stock traded down, it is still up on the day by quite a bit but off of the open.
So you could say that’s a problem. Well, it’s really not because then on Wednesday, the day before Thanksgiving, think everybody is pushing away, going to get the turkey. Instead, the stock hit 35.00 and that’s all she wrote. Basically it closed at the high of the day and now we are in a situation where this stock has flushed out a lot of sellers and buyers are still in on this stock.
I would say watch how this stock trades on Friday. If this breaks above $35.00 you could see the stock continue to run, I’d give it another 10 percent. This thing was up at $60.00 just last year. You can see the kind of reversal it’s had; I could see this stock running up nicely, again, at least to $40.00. So watch the 35.00 level, if it breaks out above 35.00 buy the stock. Keep a stop, give it a couple of bucks, and then see what happens. My bet is you are going to make some money on it.