NNDM Stock Forecast: Nano Dimension Ltd technicals still point lower after acquisition-related jump
- Nano Dimension Ltd has jumped by 7.53% on Tuesday following prosing acquisition news.
- NASDAQ: NNDM technicals continue pointing lower for the next few trading sessions.
- The Israeli firm's positioning in the Industry 4.0 sector may help gain traction in the longer term.
Machine learning, deep learning, Industry 4.0 – Nano Dimension Ltd (NASDAQ: NNDM) has all the hot buzzwords and also backs it up with its own and acquired technologies. However, while the firm's prospects are promising (see below), shares are far from being out of the woods.
Examing's NNDM's four-hour chart shows that the downtrend remains intact. Failing to break above the $17.89 peak – twice – back in February triggered a slide that has yet to conclude.
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The 50 Simple Moving Average (SMA) crossed the 200 SMA in early April, another bearish sign while the Relative Strength Index (RSI) is outside oversold conditions, also allowing for more falls. Moreover, momentum is to the downside. Another worrying factor is that Tuesday's price action saw a significant decline from a 17.3% gain at the peak to only 7.5% at the close, showing bears have more strength at this point.
Bulls may find solace in the fact that similar to that double-top, the recent bounce off the $6.50 level is forming a double-bottom which may eventually turn into a bullish scenario.
All in all bears still have an upper hand, at least in the near term.
MNDM stock news
As mentioned at the outset, Nano Dimension is at the right place, and at the right time. The Israeli-based firm is in the Additively Manufacturing Electronic (AME) industry which is gaining traction as several countries want to enhance their own industries. The covid crisis has given deglobalization a boost and industry may become more redundant.
Moreover, the development that sent shares higher came from Nano's acquisition of DeepCube, which has developed deep-learning and machine learning technologies. This move further boosts the company's fortunes. The deal is worth a total of roughly $70 million in cash and shares and is set to close within days. The sums seem small in comparison with Nano Dimension's $1.7 billion market capitalization at the time of writing.
Overall, long-term investors may certainly consider buying shares, but those looking for a quick buck may want to reconsider given the unfavorable technical positioning.
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Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
