Northern Dynasty Minerals Ltd. (NAK)

NAK stock forecast: buy or sell

NAK stock outlook

  • Northern Dynasty Minerals stock dropped -13.79% to close at $1.50 on the stock market yesterday, breaking a streak of 3 sessions in green.
  • Price is drawing a scaled uptrend since late March with higher tops and higher bottoms. Up to date, price made a 328.57% profit since the beginning of this rally
  • Northern Dynasty Minerals Ltd. engages in the exploration of mineral properties in the United States.
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Please read:
The comments contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the particular conditions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for educative purposes only

NAK stock chart overview

Should I buy Northern Dynasty Minerals stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is NAK stock a buy?

In the current situation of Northern Dynasty Minerals there is not any eligible buy setup. This doesn't mean we expect a selloff for NAK in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Northern Dynasty Minerals stock?

Do you know when is it time to sell Northern Dynasty Minerals?. Trading strategies allow us to avoid impulsive decisions based on our feelings or the noise that surrounds the market. When selling, as well as buying, detailed setups are very simple to use and are only applicable for selling shares you already own, not for shorting NAK stock

As a golden rule, you should never mantain an investment that results in greater losses than those expected upon the buy. The timing to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Northern Dynasty Minerals stock?

Currently, Northern Dynasty Minerals stock doesn't match any of our preferred sell setups, so if you hold Northern Dynasty Minerals shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Northern Dynasty Minerals stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating published in the previous month for Northern Dynasty Minerals

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Technical analysis

Northern Dynasty Minerals stock started an uptrend in late March, and gained an amazing 328.57%. Rising highs and lows can be seen easily on a chart and how price provided very few entry points on the breakouts. Latest low was in early June, when price bounced at $1.11. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $1.91 and $1.11

SMAs overview

Moving averages are tools for traders to detect market momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use supports and resistances as a way to identify price points on a chart that may work as barriers, preventing the price of a stock to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it is likely to continue descending until meeting another support level. On the other hand, resistance levels are where the price tends to find opposition as it moves up. Likewise, this means that the price is more liable to "bounce off" at this level, and if it finally crosses this level, it will rally more easily until it approaches the next resistance

The current resistances are:

  • R1: $1.50 (0% above)
  • R2: $1.55 (3.33% above)
  • R3: $1.60 (6.67% above)
  • The current supports are:

  • S1: $1.47 (-2% below)
  • S2: $1.41 (-6% below)
  • S3: $1.37 (-8.67% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. It is composed of 3 lines that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on Thursday, the price has corrected downwards by 16.67%

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price action to spot when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves in a range from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    After breaking above the line of 70 yesterday, Relative Strength Indicator sliced back below with a reading of 54.24. This is a weak signal for the Northern Dynasty Minerals shares and it must put us on alert of weakness in the stock price

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    Earnings and financials

    3rd-quarter investors call was hosted by NAK on November 2019 after posting the financial report. The consensus earnings estimate is a a per-share earnings of %s of $-0.01, that is a 0% lower than last reported quarter.

    This compares to earnings of $-0.01 per share a year ago, so current EPS is an increase of 100%. Looking at turnover, figures just changed compared to $0.00 same quarter last year.

    NAK releases financial report on mid next August. Wall Street analysts estimate an EPS of $-0.01, that is a 0% less than Q3. Financial reporting day has an additional risk for traders as the data disclosed can gap up or down the shares price with exceptionally low liquidity and not respecting your buy/stop-loss orders. You can probably uncover more details about the earnings call and the financial reports on the Investor Relations section of its website: http://www.northerndynastyminerals.com.

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