Nutanix Rises 3.27% to 75.70 as Bullish Candles Signal Potential Reversal

Nutanix (NTNX) gained 3.27% in the latest trading session, closing at $75.70 on above-average volume of 1.79 million shares. This upward move recovered most of the prior day's decline, setting the stage for a comprehensive technical assessment using historical price data spanning approximately one year.
Candlestick Theory
Recent candlesticks indicate a potential bullish reversal. The August 6th session formed a robust bullish candle that fully engulfed the prior day's bearish body, suggesting strong buying pressure near the $73.30 support level. Significant resistance is evident near the $77-78 range, where multiple prior peaks (July 30th: $77.45, June 5th: $79.27) have formed. Support emerges around $73.30 (August 5th low) and more critically near $70.00, aligning with the early July consolidation zone.
Moving Average Theory
The 50-day moving average (approximately $75.62 based on recent closes) is currently being tested, while the 100-day MA (near $70.50) and 200-day MA (around $67.80) maintain upward slopes. Price is trading below the flattening 50-day MA but remains decisively above the longer-term averages, suggesting short-term consolidation within a broader uptrend. A sustained break above the 50-day MA would be required to signal renewed bullish momentum.
MACD & KDJ Indicators
The MACD histogram shows improving momentum but remains below its signal line in negative territory, indicating persistent but waning bearish pressure. KDJ readings are rebounding from oversold territory (recent K: 25, D: 28, J: 19) with the %J line crossing upward, suggesting growing upside potential. This nascent momentum shift requires confirmation.
Bollinger Bands
Volatility has contracted notably after the July expansion, with bands tightening around the current price ($72-$78 range). Price is testing the midline (20-period SMA ~$75.60) from below. A successful close above this level could signal a resumption of the uptrend, while rejection here might reinforce the $72-$75 consolidation range. The tightening bands suggest an impending volatility expansion.
Volume-Price Relationship
The August 6th rally occurred on elevated volume (1.79M shares vs. 30-day avg ~2.1M), lending credibility to the breakout attempt. However, distribution was evident during the July decline, evidenced by higher-volume down days (July 31st: -2.06% on 1.48M shares). Sustained volume support is needed to validate the current rebound.
Relative Strength Index (RSI)
The 14-day RSI (approximately 49.6) has rebounded from oversold levels near 30 in late July but remains neutral. While not currently signaling overbought (>70) or oversold (<30) conditions, the upward trajectory from oversold territory aligns with a potential recovery phase. The indicator lacks extreme readings that would warn of exhaustion.
Fibonacci Retracement
Applying Fibonacci levels to the March low ($56.46) to June high ($79.27) shows critical support near the 61.8% retracement level (~$68.50), which held during the July pullback. The 50% retracement ($67.86) and 38.2% level ($71.08) provided temporary support during corrections. Current price action is testing the 23.6% retracement ($75.60), which aligns with key moving averages and Bollinger midline – a significant technical confluence.
Confluence & Divergence Notes
Significant technical confluence exists around $75.50-$76.00, combining the 50-day MA, Bollinger midline, 23.6% Fibonacci level, and prior resistance. A decisive close above this zone could trigger bullish momentum. Divergence is noted between MACD (still bearish) and KDJ/RSI (improving from oversold), suggesting potential for momentum reversal if buying pressure persists. Volume divergence remains a concern, as the recent rally lacks the volume conviction seen during the March-June uptrend.