NUTANIX INC - A (NASDAQ:NTNX) - A Strong Technical Setup for Breakout Traders

NUTANIX INC - A (NASDAQ:NTNX) has been identified as a compelling technical breakout candidate based on its strong momentum and consolidation pattern. The stock currently holds high ratings in both technical health and setup quality, suggesting potential for a continuation of its upward trend.

Technical Strength

NTNX earns a Technical Rating of 9 out of 10, reflecting its strong price action and trend characteristics. Key factors supporting this rating include:

• Positive trends: Both short-term and long-term trends are upward, indicating sustained buying interest.
• Relative strength: The stock has outperformed 88% of all stocks over the past year and ranks in the top 25% of its Software industry peers.
• Supportive moving averages: The stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, confirming bullish momentum.
• Volume profile: Average daily trading volume remains healthy at approximately 2.75 million shares, ensuring liquidity.

Setup Quality

NTNX also scores a Setup Rating of 9, signaling a well-defined consolidation phase with potential for a breakout. Key observations include:

• Tight price range: The stock has been trading between $71.44 and $77.74 over the past month, showing reduced volatility.
• Support and resistance: A clear support zone exists near $75.41, while resistance sits around $77.58. A breakout above resistance could trigger further upside.
• Recent pocket pivot: A bullish accumulation signal was recently detected, reinforcing the positive setup.

Trade Considerations

For traders considering this setup:

• A breakout above $77.59 could serve as an entry point.
• A stop-loss below $74.20 (just under support) limits downside risk to ~4.4%.
• The stock’s Average True Range (ATR) of 2.67% suggests manageable volatility for position sizing.

For a deeper analysis, review the full technical report for NTNX.

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Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before trading.