How to Trade Quanex NX Building Products

February 10, 2022, 4:30 PM ET, BY Thomas H. Kee Jr – Managing Editor, Stock Traders Daily | Publisher: Thomas H. Kee Jr. (Follow on LinkedIn)

Longer term trading plans for NX

• Buy NX on 20.05 target 22.10 stop loss @ 19.99 Details

Summary technical data tells us to buy NX around 20.05 with an upside target of 22.10. This data also tells us to set a stop loss @ 19.99 to protect against excessive loss in case the stock starts to move against the trade. 20.05 is the first level of support below 21.81, and generally any test of support is a buy signal. In this case, the 20.05 support would be tested, so a buy signal would exist.

• Short NX below 22.10, target 20.05, stop loss @ 22.16 Details

Technical summary data suggests a short of NX as it nears 22.10 with a downside target of 20.05. We should have a stop loss in place at 22.16 though. 22.10 is the first level of resistance above 21.81, and generally any test of resistance is a short signal. In this case, if resistance 22.10 is tested, a short signal would exist.

Swing Trading Plans for NX

• Buy NX at 22.12, target 24.29, Stop Loss @ 22.06 Details

If 22.12 starts to break higher, the technical summary tells us to buy NX just above 22.12, with an upside target of 24.29. The data also tells us to set a stop loss at 22.06 in case the stock turns against the trade. 22.12 is the first level of resistance above 21.81, and generally any break above resistance is a buy signal. In this case, 22.12, initial resistance, would break higher, so a buy signal would exist. Since this plan is based on breaking resistance, it is called a long resistance plan.

• Short NX towards 22.12, target 21.24, Stop Loss @ 22.18. Details

Technical summary data suggests a short of NX if it tests 22.12 with a downside target of 21.24. We should have a stop loss in place at 22.18 but in case the stock starts to move against the trade. Typically, any resistance test is a short signal. In this case, if the resistance, 22.12, is tested, a short signal would exist. Because this plan is a short plan based on a stress test, it is called a short resistance plan.

Daily Trading Plans for NX

• Buy NX at 22.20, Target 24.29, Stop Loss @ 22.15 Details

If 22.20 starts to break higher, the technical summary data tells us to buy NX just above 22.20, with an upside target of 24.29. The data also tells us to set a stop loss at 22.15 in case the stock turns against the trade. 22.20 is the first level of resistance above 21.81, and generally any break above resistance is a buy signal. In this case, 22.20, initial resistance, would break higher, so a buy signal would exist. Since this plan is based on breaking resistance, it is called a long resistance plan.

• Short NX near 22.20, target 21.74, Stop Loss @ 22.25. Details

Technical summary data suggests a short of NX if it tests 22.20 with a downside target of 21.74. We should have a stop loss in place at 22.25 in case the stock starts moving against the trade. Typically, any resistance test is a short signal. In this case, if the resistance, 22.20, is tested, a short signal would exist. Because this plan is a short plan based on a stress test, it is called a short resistance plan.

NX Technical Summary | Raw data for trading plans

This report provides trading strategies for Quanex Building Products (NYSE: NX) while incorporating risk controls.

Warning:

This is a static report, the data below was valid at the time of publication, but support and resistance levels for NX change over time, so the report should be updated regularly. Real-time updates are provided to subscribers. Unlimited real-time reports.

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Instructions:

The rules that govern the data in this report are the rules of technical analysis. For example, if NX tests support, buy signals surface and resistance is the target. Conversely, if resistance is tested, it is a sign to control risk or short, and support would be the downside target accordingly. In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel) and it also acts as a level of risk control.

Swing Trades, Day Trades and Longer Term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading and Long Term Investment Plans for NX as well. All these elements are proposed under the summary table.