Nutanix Inc (NASDAQ: NTNX)

Nutanix, Inc. develops and provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa.

Take a look at the 1-year chart of Nutanix (NASDAQ: NTNX) below with my added notations:

Over the past 4 months, NTNX has formed an inverse head and shoulders reversal pattern (green). The head (H) and the shoulders (s) are noted to make the pattern more visible. The stock’s neckline resistance is at the $27.5 level (red). NTNX will confirm the pattern if the stock breaks through the neckline.

The Tale of the Tape: NTNX has formed an inverse head & shoulders pattern. A long trade could be entered on a break through the $27.5 level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT