Nutanix, Inc. (NASDAQ: NTNX)

Nutanix, Inc. engages in the provision of enterprise virtualization and storage solutions. It specializes in cloud operating system that converges traditional silos of server, virtualization, storage, and networking into one integrated solution and unifies private and public cloud into a single software fabric. Its products are offered through the Acropolis and Prism brands.

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

Over the past four months, NTNX has been trending higher, while also forming a trend line of support (green) along the way. Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its relevance. A pullback to the NTNX line provides trading opportunities, one way or another.

The Tale of the Tape: NTNX has formed a trend line of support. A long position could be entered on a pullback to the trendline, with a stop placed below the level of entry. A short position could be entered if NTNX were to break below its trendline. 

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

@cmtstockcoach