NOW (DNOW) sees the hammer chart pattern: when to buy?

NOW Inc. DNOW has been struggling lately, but the selling pressure may end soon. This is because DNOW recently saw a hammer chart pattern that may signal that the stock is approaching a bottom.

What is a hammer chart template?

A hammer chart pattern is a popular technical indicator used in candlestick charts. The hammer appears when a stock tumbles during the day, but then finds strength at some point in the session to close near or above its opening price. This forms a candlestick that resembles a hammer and may suggest that the market has found a low point in the action and better days are ahead.

Other factors

What’s more, earnings estimates have risen for this company, even despite sluggish trading lately. In the last 60 days alone, 2 estimates have increased, compared to none lower, while the consensus estimate has also moved in the right direction.

Estimates have actually risen so much that the title now has a Zacks Rank 2 (buy), suggesting that this relatively unloved title may be breaking down soon. This will be especially true if the DNOW action can build momentum from here and find a way to continue higher than this encouraging business development. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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