Chart Review – NEXTDC (NXT)

1.Daily Chart – 1 yearnxt-dec-16

 

2. Weekly chart – 6 years

nxt-wk-dec-16

NEXTDC is a provider of data centres for – “cloud computing” and a stock that has been arousing increasing interest.

The share-price doubled in 2016 from about $2.20 to $4.40. The $4 plus high corresponded to the announcement in September of a $150 million capital raising to fund a second data centre in Sydney (all-up cost to be about $400). Since then the share-price has eased to under $3, but in the last couple of weeks has rebounded strongly to $3.50 to $3.60.

The 6 year weekly chart shows an intact uptrend. Using this as a guide, $2.90 to $3 would seem to be a reasonable entry price for investors who wish to follow its future fortunes.

Disclaimer:

I am neither a professional financial adviser nor a stock-broker. I write as a retail investor with an interest in technical analysis as an aid to decision making.  I have only chosen to review NEXTDC because it has drawn considerable interest in the financial press this year. It is particularly important for any reader of this post to do their own homework, and to seek proper financial advice before investing.

I do not own shares in NEXTDC because it is a capital intensive enterprise, likely to need further injections of capital,  which may well result in price volatility I would rather avoid.

 

 



Categories: Chart Analyses, Trading opinion

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