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.
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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