My favorite Stock for 05-31-2019 is $NTNXGood Morning traders, so my favorite stock for today is NASDAQ:NTNX , this one is below of all its moving averages, it just broke a very important trend line, it has support at 25.66, but if webreak this level we can move all way down to 20.96, i will wait for a confirmation of the break and i will be short, it would a nice move if it works.
AMEX:SPY its gapping down today but we have a very important support level at 275.47.
Do your own tech analysis, this for educational purposes.
0NU trade ideas
NTNX- neutral nutanixThis trade is neutral because it is placed as far away as I could for a minimal debit. You could say that it is bearish because I make money if NTNX drops but you can also say it is bullish because I have 2 uncovered puts which means I will have to get long if price drops considerably. I sold a 2 lot in April with 48 days to expiry. On such a big drop it is wiser to wait for the "3 day rule" but I am going to enter on day 1 and see what happens. I.V. rank is 53% and I sold 4 of the 27.5 puts and bought 2 of the 30 strike puts for a small debit of .05 I normally want a credit for this trade but the 2.5 wide strikes are a pain in the a$$ especially in low cost underlyings such as this. I will take this trade anyways as I have very little bearish exposure and we have rallied pretty fast and furiously already. This will give me the width of the spread as profit if we fall all the way through my strikes of 2.50 minus the short strike of 27.5 for a basis of 25 which looks like decent support on a long term time frame (big base before the first rally). Wish me luck
$NTNX - 35 Acting as major support.The combination of chart technicals, business model, macro tech trend, partnerships, competitive positioning, etc. is starting to develop a strong bullish case for Nutanix.
I understand that it previously had a bearish gap down on big volume after an earnings announcement and traded below $35 for a short period of time. After that it rallied back above the $35 dollar price area and is now starting to retrace about 50% of the recent earnings gap down. Based on these technical chart indications, I feel that the market's price discovery mechanism is suggesting that there is willingness to accumulate here.
Beyond the technicals, you have the recent announcement of a partnership with Hewlett Packard Enterprise ($HPE) which is a world class technology organization. I believe this formation of an alliance should create value-add synergies that will further escalate Nutanix's leadership position. Speaking of leadership positioning, Gartner also recently released their report/analysis on the hyperconverged infrastructure marketplace. This report allows us to have a strong visual on the marketplace competitors and their ability to execute and demonstrate vision. Acting as confirmation, this report shows Nutanix being the clear leader which ultimately reinforces my longer term bullish thesis for this security.
As always guys, this is not a recommendation to buy or sell! Just my opinion on where I believe this security will travel to next. :P
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$NTNX Nutanix has massive rewards. Nutanix is a lesser know enterprise cloud software provider, with major growth prospects. During the earnings release the company provided poor guidance due to new strategy implementation, thus the massive sell off. The CEO quickly addressed the concerns of investors in the days that followed and walked back on this new strategy, admitting it was flawed. This has provided a great buying opportunity and the gap up offers rewards to new investors. We see a low risk 20-30% gain the coming months.
$NTNX Looks a bit interesting hereLast Friday (2.28.2019), $NTNX had a major gap-down making it a 40% decline YTD. From a fundamental investor perspective this looks quite attractive as it is down more than 20% on the year. However, from a technical trading perspective I think this security may see continuation to the downside in the coming trading days as it has gapped down on high volume and blown through prior support/resistance (support that was prior resistance and dated back to early IPO days).
As a hyperconverged data-center and enterprise solution provider at around $6B in market cap, I believe this security has a bright future (in several years and assuming global macro conditions sustains itself). Until then the short to mid term trading, i.e. days to weeks, looks to perform quite poorly. I would be eyeing this security at the 30s, but if it decides to hover above 35 then I think there is room for a quick retracement to the upside here.
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Preferred Trading Tools I Leverage:
• Finviz: finviz.com
• GuruFocus: goo.gl
NTNX Aug18 target 66.NUTANIX (NTNX)
The daily chart shows a zigzag (VVVV) pattern.
N° 1st leg starting date Downtrend length 2nd leg starting date Uptrend length Old High New High %
1 22-03-18 5 sessions 28-03-18 15 sessions 55.25 56.28 +1.8%
2 18-04-18 9 sessions 30-04-18 9 sessions 56.28 60.00 +6.61%
3 14-05-18 11 sessions 29-05-18 13 sessions 60.00 64.87 +8.1%
4 14-06-18 11 sessions 28-06-18 8 sessions* 64.87 ??? ???
** means pending.
Considering the min percentage, the new target is $66. In addition, considering the max uptrend length the $66 target might be achieved by July 31 .
However, NTNX have only monthly options so one might consider Aug18 $65 calls at 0.75 x 0.90. One might not like the spread of 65$ calls, then he should consider Aug18 $60 calls at 1.80 x 1.90, Delta 0.338, IV 51.36%, OI 1.6k.
Entry : above $56.