Northern Data AG technical analysis
Konstantin Kaiser | Jan 21, 2021 03:58
Northern Data AG (DE:NB2) was selected as one of the top picks of Hauck & Aufhaeuser Investment Bank, and with a surge of close to 150% in less than three months, it’s obvious why. Let’s take a look at the current outlook of NB2 from a technical standpoint.
Northern Data AG monthly chart
Northern Data is in an everlasting bull trend since it formed its all-time-low at $9.8 in September 2019. In fact, Northern surged 935% since then, all the way up to $101.6 where it established an all-time-high. With that, it missed the important Fibonacci resistance at $108 only by a few dollars, and Northern Data should soon be able to reach that important level.
Northern Data AG weekly chart
When looking at the weekly chart, Northern Data is very bullish as well. The MACD hints at a continuation of the uptrend, while the RSI gives no bearish signals. Only in regards to the fact that the RSI is nearing overbought region should make one practice caution. But the significant increase in buy-volume hints at a great uptrend for the successive year.
Northern Data AG daily chart
Only in the short-term, Northern Data could face a correction towards the important Fibonacci support levels. With a closer look at the daily chart, it becomes apparent that the MACD is about to cross bearishly, while the histogram is ticking lower. With the MACD giving us a bearish signal, the NB2 stock could decline towards the 0.382 Fib level at $78, or even to the golden pocket at around $63.
Apart from that, NB2 faces major support at $82.2 and $66.8, where the 50-day-ema acts as additional support.
The investment bank Hauck & Aufhaeuser has elaborated Northern Data’s projected performance as follows:
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“The ongoing ramp-up of the company’s computing cluster with sites in Norway, Canada, the Netherlands, Sweden, the USA, and Germany significantly increases visibility on the targeted stellar sales growth. With an anchor customer already signed, utilization should reach 100% by the end of Q2.
An additional upside to Northern Data’s FY 2021 guidance is stemming from a profit-sharing agreement with selective customers that use ND’s infrastructure to mine Bitcoin. At current Bitcoin prices, the component should exceed €100m. Rumour has it that ND could be looking to re-list on Nasdaq in the short-term, which would be another major catalyst.”
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