NXTDC, provider of 8 IT data centres in 5 major Australian cities, enjoyed stellar appreciation of its share-price from $4.02 on the 24/07/17, to a high of $7.85 on the 23/02/18.
The 12 month candlestick daily chart by Metastock with Paritech data shows the formation of a double top pattern in the price action of the past month, followed by the start of a corrective movement lower.
This probably reflects investor profit taking, rather than a reversal of market sentiment but it is suggested that investors continue to monitor this corrective move lower. If the 54 cent exhaustion trading gap overnight on the 23/2/18 is closed, further price falls are likely. Trading gaps are indicative of strong momentum, and tend to provide a support level for resumption of trending.
This post takes no account of non-technical considerations. Readers should therefore seek qualified advice from their broker or investment adviser, before investing.
Categories: Chart Analyses