Digging Through Pure Storage, Inc. (PSTG) Technicals

Pure Storage, Inc. (NYSE:PSTG) closed December 05 at $17.04, down -11.57% or $2.23 from its record high price of $19.27. Looking at the other side of the coin, PSTG traded as low as $9.12 in the past 52 weeks, and since then the shares have risen 86.84% or $7.92. The recent price momentum makes it one stock to watch in recent days. Its 3.02% appreciation from Monday’s close has set alarm bells ringing.

Is Pure Storage, Inc. (NYSE:PSTG) Performing Well?

Pure Storage, Inc. (PSTG) shares are down -10.41% for the week and that has got investors and traders sitting up and taking note. PSTG is already driving a 31.48% rally over the course of the past year and is now up 50.66% since this point in 2017. Speaking of monthly performance, PSTG tapped a 3.34% gain. Also, the equity price jumped 13.68% % in three months, taking the six-month increase to 31.38% as of recent close. With that said, researchers took a deep dive into the hotly debated question: is it too late to buy Pure Storage, Inc. (NYSE:PSTG).

Pure Storage, Inc. (PSTG) Soon To Be A $4.18B Company

Analyst research firms are expressing bullish stance on Pure Storage, Inc. (NYSE:PSTG)’s near-term growth potential. They anticipate the PSTG stock will hit $20.67 on a short term (12 month) basis. Their average price target spell out an upbeat performance – a 21% and would give PSTG a market capitalization of nearly $4.18B.

Pure Storage, Inc. Current Recommendations

Valued currently at $17.04, the vast majority of Wall Street analysts continue to say it’s a hold. Mean recommendation is rated on a 1 to 5 scale. 1 is equivalent to a buy rating, 3 a hold rating, and 5 a sell rating. The Mean Recommendation is the average rating on a stock by the analyst community.

Is PSTG Technically Strong Enough?

Right now, PSTG’s beta is 0. That makes it -1 more volatile than the broad market. Pure Storage, Inc. (NYSE:PSTG) is 28.65% above its 200-day moving average, providing a measure of resistance for long positions. On a similar note, the stock is 2.78% above its 50-day moving average, providing a measure of support for short positions. The average daily volatility for the week was at 6.81%, which was 3.65 higher than that in the past month.

Pure Storage, Inc. (PSTG) In Neutral Territory

From another technical standpoint, Pure Storage, Inc. (NYSE:PSTG)’s 14-day Relative Strength Index (RSI) has reached 48.99, putting it inside a neutral zone. If the RSI is traveling up and it is between 40 and 80, it is probably an indication of an uptrend. If it moves beyond 70 but cannot hold this ground and instead falls below 70, it could be an indication that the market is overbought and prone to become bearish, at least in the short term. Conversely, if the RSI is traveling down and it is between 60 and 20, it is probably an indication of a downtrend. If it moves below 30 and fails to remain below, it could be an indication that the market is oversold and poised to become bullish, at least in the short term.

How Active Are Pure Storage, Inc. (NYSE:PSTG) Shares?

Technical analysts also use volume to predict trends. The current trading volume of 2.59 sits 51.46% higher than the past 3 month’s readings, indicating near-term traders have been more active toward PSTG than usual of late. The company trades on average around 171000 shares per market session. Major moves in volume can signal unusual activity, such as insider trading. Unusual volume can be a major signal that investment gurus and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well ahead of a large spike, so it’s always a smart move to monitor unusual volume. In terms of relative volume, these shares are trading at 1.51x their normal volume.