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Nutanix (NTNX) Just Flashed Golden Cross Signal: Do You Buy?

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Nutanix (NTNX - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NTNX broke through the 20-day moving average, which suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for NTNX

NTNX has rallied 12.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests NTNX could be on the verge of another move higher.

The bullish case solidifies once investors consider NTNX's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.

Investors may want to watch NTNX for more gains in the near future given the company's key technical level and positive earnings estimate revisions.


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