NIHD Stock: Moving Like a Freight Train Toward Higher Prices
It is very seldom that come I across stocks that go on a perpetual move toward higher prices, which is why I am returning to focus on NII Holdings Inc (NASDAQ:NIHD) stock. NII Holdings stock has gone on a complete tear since I originally focused on it on June 29, 2018, in a publication titled “These Indications Continue to Support Higher NIHD Stock Prices.”
Since that fateful day in June, NIHD stock has made a move from $3.70 to $6.99, where it currently stands. This represents an incredible 88.92% return in one month’s time, illustrating that when stocks go on a tear toward higher prices, they have a tendency to move in great leaps and bounds.
This move toward higher prices has been both methodical and constructive. The wave structure highlighted on the following NII Holdings stock chart has been responsible for supporting this incredible move toward higher prices.
Chart courtesy of StockCharts.com
This NIHD stock chart highlights the methodical and constructive wave structure responsible for creating and sustaining the bullish trend in NII Holdings stock.
This wave structure is made up of impulse waves and consolidation waves.
The impulse waves, which are highlighted in green, capture the stage in a bullish trend when a stock makes a sustained move toward higher prices.
The consolidation waves, which are highlighted in purple, capture the stage in a bullish trend when a stock corrects and refrains from advancing.
Impulse waves are advancing in nature and consolidation waves are corrective in nature. These waves feed off each other, creating the stair-step price action that bullish trends are so famous for.
The development of these waves has been supported by the moving average convergence/divergence (MACD) indicator.
MACD is an influential momentum indicator used to distinguish whether bullish or bearish momentum is influencing the price action in a stock. Bullish momentum implies that a stock is geared toward higher prices, while bearish momentum implies that a stock is geared toward lower prices.
This is pertinent information because a stock cannot sustain a move in either direction unless the applicable level of momentum is supporting it. This is why the development of impulse waves has been supported by bullish MACD signals, and the development of consolidation waves has been supported by bearish MACD signals.
The latest MACD signal was generated on July 25, 2018. An impulse wave has been in development ever since.
What makes this wave structure special is that it has been developing within a well-defined technical price pattern. This pattern is highlighted on the following NII Holdings stock chart.
Chart courtesy of StockCharts.com
This NIHD stock chart highlights a technical price pattern known as an ascending channel.
An ascending channel is defined by its price action, which contains a series of higher highs and higher lows. This is also the quintessential characteristic that defines a bullish trend.
Capturing this pattern was achieved by using two parallel upward-sloping trend lines that connected these respective levels of higher highs and higher lows. These trend lines not only capture the price pattern but also identify where significant levels of price support and price resistance reside.
Knowing where price support and price resistance reside is very pertinent information because as long as NII Holdings stock is contained within these trend lines, I can only assume that a bullish trend is in development. If that is the case, then higher NIHD stock prices will prevail over time.
The most recent test of support occurred on July 20, 2018. Since that successful test, higher prices have prevailed. It has been a number of months since resistance has been tested so it is only logical to believe that resistance is likely to be tested in the not-too-distant future.
Resistance is ear-marked by an upward-sloping trend line, so the longer it takes to get there, the higher this objective becomes. It is worthwhile noting that the all-time high for NIHD stock resides at $16.88, which just happens to coincide with resistance outlined by the ascending channel. Making it a viable price objective.
A number of technical developments have been supporting a move toward higher NII Holdings stock prices. As long as NIHD stock continues to trade within the confines of the ascending channel, it suggests that a bull market is in development and higher stock prices are likely to prevail over time.