Stock Price Trends

Quanex Building Products (NX)

None

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 67.40% per annum.
  • NX price at the close of July 25, 2024 was $33.19 and was higher than the top border of the primary price channel by $5.21 (18.62%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 10,404.66% per annum.
  • NX price at the close of July 25, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

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 NX 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: March 15, 2024
End date: July 15, 2024

a = 8.8723

b = -0.0031

s = 0.0332

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0031) – 1
= -67.40%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0332) – 1
= 14.21%

March 15, 2024 calculations

Top border of price channel:

Exp(Y1,167)
= Exp(a + b × X1,167 + 2 × s)
= Exp(a + b × 1,694 + 2 × s)
= Exp(8.8723 + -0.0031 × 1,694 + 2 × 0.0332)
= Exp(3.7368)
= $41.96

Bottom border of price channel:

Exp(Y1,167)
= Exp(a + b × X1,167 – 2 × s)
= Exp(a + b × 1,694 – 2 × s)
= Exp(8.8723 + -0.0031 × 1,694 – 2 × 0.0332)
= Exp(3.6039)
= $36.74

July 15, 2024 calculations

Top border of price channel:

Exp(Y1,249)
= Exp(a + b × X1,249 + 2 × s)
= Exp(a + b × 1,816 + 2 × s)
= Exp(8.8723 + -0.0031 × 1,816 + 2 × 0.0332)
= Exp(3.3622)
= $28.85

Bottom border of price channel:

Exp(Y1,249)
= Exp(a + b × X1,249 – 2 × s)
= Exp(a + b × 1,816 – 2 × s)
= Exp(8.8723 + -0.0031 × 1,816 – 2 × 0.0332)
= Exp(3.2293)
= $25.26

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 67.40% per annum.
  • NX price at the close of July 25, 2024 was $33.19 and was higher than the top border of the primary price channel by $5.21 (18.62%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: July 5, 2024
End date: July 25, 2024

a = -19.7831

b = 0.0128

s = 0.0297

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0128) – 1
= 10,404.66%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0297) – 1
= 12.61%

July 5, 2024 calculations

Top border of price channel:

Exp(Y1,243)
= Exp(a + b × X1,243 + 2 × s)
= Exp(a + b × 1,806 + 2 × s)
= Exp(-19.7831 + 0.0128 × 1,806 + 2 × 0.0297)
= Exp(3.3060)
= $27.28

Bottom border of price channel:

Exp(Y1,243)
= Exp(a + b × X1,243 – 2 × s)
= Exp(a + b × 1,806 – 2 × s)
= Exp(-19.7831 + 0.0128 × 1,806 – 2 × 0.0297)
= Exp(3.1872)
= $24.22

July 25, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(-19.7831 + 0.0128 × 1,826 + 2 × 0.0297)
= Exp(3.5610)
= $35.20

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-19.7831 + 0.0128 × 1,826 – 2 × 0.0297)
= Exp(3.4422)
= $31.26

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 10,404.66% per annum.
  • NX price at the close of July 25, 2024 was inside the secondary price channel.