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 38.44% per annum.
  • NX price at the close of November 19, 2024 was $29.89 and was higher than the top border of the primary price channel by $1.16 (4.05%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 61.16% per annum.
  • NX price at the close of November 19, 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: February 9, 2024
End date: October 11, 2024

a = 5.6512

b = -0.0013

s = 0.0668

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0013) – 1
= -38.44%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0668) – 1
= 30.63%

February 9, 2024 calculations

Top border of price channel:

Exp(Y1,061)
= Exp(a + b × X1,061 + 2 × s)
= Exp(a + b × 1,542 + 2 × s)
= Exp(5.6512 + -0.0013 × 1,542 + 2 × 0.0668)
= Exp(3.7353)
= $41.90

Bottom border of price channel:

Exp(Y1,061)
= Exp(a + b × X1,061 – 2 × s)
= Exp(a + b × 1,542 – 2 × s)
= Exp(5.6512 + -0.0013 × 1,542 – 2 × 0.0668)
= Exp(3.4681)
= $32.08

October 11, 2024 calculations

Top border of price channel:

Exp(Y1,230)
= Exp(a + b × X1,230 + 2 × s)
= Exp(a + b × 1,787 + 2 × s)
= Exp(5.6512 + -0.0013 × 1,787 + 2 × 0.0668)
= Exp(3.4097)
= $30.26

Bottom border of price channel:

Exp(Y1,230)
= Exp(a + b × X1,230 – 2 × s)
= Exp(a + b × 1,787 – 2 × s)
= Exp(5.6512 + -0.0013 × 1,787 – 2 × 0.0668)
= Exp(3.1425)
= $23.16

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 38.44% per annum.
  • NX price at the close of November 19, 2024 was $29.89 and was higher than the top border of the primary price channel by $1.16 (4.05%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: August 7, 2024
End date: November 19, 2024

a = 1.0228

b = 0.0013

s = 0.0356

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 61.16%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0356) – 1
= 15.31%

August 7, 2024 calculations

Top border of price channel:

Exp(Y1,184)
= Exp(a + b × X1,184 + 2 × s)
= Exp(a + b × 1,722 + 2 × s)
= Exp(1.0228 + 0.0013 × 1,722 + 2 × 0.0356)
= Exp(3.3454)
= $28.37

Bottom border of price channel:

Exp(Y1,184)
= Exp(a + b × X1,184 – 2 × s)
= Exp(a + b × 1,722 – 2 × s)
= Exp(1.0228 + 0.0013 × 1,722 – 2 × 0.0356)
= Exp(3.2029)
= $24.60

November 19, 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(1.0228 + 0.0013 × 1,826 + 2 × 0.0356)
= Exp(3.4814)
= $32.50

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.0228 + 0.0013 × 1,826 – 2 × 0.0356)
= Exp(3.3389)
= $28.19

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 61.16% per annum.
  • NX price at the close of November 19, 2024 was inside the secondary price channel.