A look at NCK and what is setting up to be further pain for buyers

Chart Analysis on NCK

Time Frame : Weekly

Sector : Retailing

Key Stats : $417.15 Million Market Cap, VWAP 5.101, ASX Ranking 379, 4 Week Av Turnover $664,956, Current Turnover (Intraday as at time of alert) 164,332, PE 10.2, Div Yield 7.77%.

Company Overview : Nick Scali Limited (NCK) is a furniture retailer operating primarily on the east coast of Australia. The Company operates two brands; the Nick Scali brand and the Sofas2Go brand.

Broker Consensus : BUY

NCK – Nick Scali Limited

NCK is on the ropes and may be setting for further pain. We see that there is a lot of long term buyers since 2013 that may be the fuel for more capitulation especially if the global rout continues. The Price hit highs around 7.50 and then failed to continue up and built a lower high which is never what you want to see as a holder or new buyer. Price put up a fight but then finally gave up on a move through 5.75 where the selling pressure piled on (Refer to chart).

Stock Code : NCK – Nick Scali Limited

Company Website : www.nickscali.com.au

Current Price : 5.135

Status : On watch for potential weakness