Nordstrom Inc (JWN)
Nordstrom, Inc., a fashion retailer, offers clothing, shoes, beauty, accessories, and household items for women, men, young adults, and children. The company is headquartered in Seattle, Washington.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 151.83% per annum.
- JWN price at the close of May 10, 2024 was $20.58 and was lower than the bottom border of the primary price channel by $0.80 (3.76%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 24.88% per annum.
- JWN price at the close of May 10, 2024 was inside the secondary price channel.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of JWN price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: September 6, 2023
End date: March 5, 2024
a = -1.4354
b = 0.0025
s = 0.0587
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0025) – 1
= 151.83%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0587) – 1
= 26.47%
September 6, 2023 calculations
Top border of price channel:
Exp(Y1,087)
= Exp(a + b × X1,087 + 2 × s)
= Exp(a + b × 1,577 + 2 × s)
= Exp(-1.4354 + 0.0025 × 1,577 + 2 × 0.0587)
= Exp(2.6724)
= $14.48
Bottom border of price channel:
Exp(Y1,087)
= Exp(a + b × X1,087 – 2 × s)
= Exp(a + b × 1,577 – 2 × s)
= Exp(-1.4354 + 0.0025 × 1,577 – 2 × 0.0587)
= Exp(2.4376)
= $11.45
March 5, 2024 calculations
Top border of price channel:
Exp(Y1,211)
= Exp(a + b × X1,211 + 2 × s)
= Exp(a + b × 1,758 + 2 × s)
= Exp(-1.4354 + 0.0025 × 1,758 + 2 × 0.0587)
= Exp(3.1304)
= $22.88
Bottom border of price channel:
Exp(Y1,211)
= Exp(a + b × X1,211 – 2 × s)
= Exp(a + b × 1,758 – 2 × s)
= Exp(-1.4354 + 0.0025 × 1,758 – 2 × 0.0587)
= Exp(2.8956)
= $18.09
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 151.83% per annum.
- JWN price at the close of May 10, 2024 was $20.58 and was lower than the bottom border of the primary price channel by $0.80 (3.76%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: December 11, 2023
End date: May 10, 2024
a = 1.8667
b = 0.0006
s = 0.0510
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 24.88%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0510) – 1
= 22.65%
December 11, 2023 calculations
Top border of price channel:
Exp(Y1,154)
= Exp(a + b × X1,154 + 2 × s)
= Exp(a + b × 1,673 + 2 × s)
= Exp(1.8667 + 0.0006 × 1,673 + 2 × 0.0510)
= Exp(2.9872)
= $19.83
Bottom border of price channel:
Exp(Y1,154)
= Exp(a + b × X1,154 – 2 × s)
= Exp(a + b × 1,673 – 2 × s)
= Exp(1.8667 + 0.0006 × 1,673 – 2 × 0.0510)
= Exp(2.7831)
= $16.17
May 10, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(1.8667 + 0.0006 × 1,824 + 2 × 0.0510)
= Exp(3.0791)
= $21.74
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(1.8667 + 0.0006 × 1,824 – 2 × 0.0510)
= Exp(2.8750)
= $17.72
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 24.88% per annum.
- JWN price at the close of May 10, 2024 was inside the secondary price channel.