Hope you caught this trade on Nutanix ($NTNX). It’s a good one…and still going. (November 29, 2019)


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Nutanix ( NASDAQ: NTNX ); I featured this a while ago. When the stock was holding here just below 30.00; so at $30.00 you could see a really nice looking reversal pattern here. I remember even noting kind of an inverse head and shoulder pattern here; it’s a really bad left shoulder but left shoulder, head, right shoulder.

You could make that case and get in earlier, this would be the two neckline points right there. Drag this through and you get a break out here, bumps its head against the ceiling, pulls back to this prior resistance, current support level, pinches; this has been a really good pattern and I think it goes even higher here. It pinches here, breaks out and keeps going.

This is a classic volatility squeeze and if you didn’t get the last video you may still be in the stock but not because of me. If you did you are in this stock and this is what I would say, I wouldn’t pay attention to this low volume here because we only traded half of a day and it’s still higher than average volume so this is a stock that is still being bought. It is walking up along the upper Bollinger Band, basically hardly even coming into the Bollinger Band complex.

I think you stay long this stock. If you buy it now you are chasing; I can’t tell you whether that’s a good thing or not you just have to see how it is on Monday. The bottom line is I think this stock is going higher. I would be surprised if it didn’t test 40.00 and that’s another 5 or 6 percent higher here.

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