Qasem Soleimani, Iranian general and face of the Islamic Revolutionary Guard Corps, is dead. The market is falling, analysts are split on whether his assassination was a good idea, and Americans are more divided than ever.
That means it’s time to go long on tech stocks.
Huh?
Believe me, I get it; the idea of buying-in right now sounds absolutely absurd. And normally, yes, it would be – especially when it comes to tech stocks, which are notoriously fickle.
But in the wake of Soleimani’s assassination, one company is actually rising. It started the day off lower, but by the end of the afternoon, share prices had risen almost 2%.
And if the gains stick, the stock – Nutanix Inc (NASDAQ: NTNX) – could be ready to rally. It all depends on what happens over the next few days.
In the daily candlestick chart above, you can see just how well NTNX has done since September. We’ve got three higher lows and two winning trades – both of which were long positions. Now, after setting its most recent higher low, NTNX is about fire off its next “burst.” The most recent daily candlestick broke out above the minor bearish trend (the furthest right yellow trendline) after the price action bounced off the 50-day moving average. The last time that happened was in November, right before NTXN soared.
The stochastic indicator looks good, too, and remains well below overbought territory (anything above 80). With the December high a good 15% away, NTNX has plenty of room to run should it keep rising. And if it does, it might make sense to go long above the most recent day’s high with a trade trigger of $33.30, just above resistance from 12/27. At that point, NTNX could erupt, especially if tensions between the U.S. and Iran cool.
But even if they don’t, the stock could still do well. After all, one of the most dastardly villains of the West was eliminated today. The rest of the market recoiled, while NTNX boldly leaped forward.
We’ll find out more come Monday, but until then, bulls should take a closer look at NTNX. It’s a stock that, for better or for worse, seems unbothered by current events.
And when the “stuff” is hitting the fan, that’s a very good thing. Especially for bulls that need a place to hide out until the uncertainty blows over – something that may or may not happen next week.
