Digi International has bucked the bear market in 2022. But investors should watch whether DGII stock falls below its 50-day moving average, which would be a sell signal.
DGII stock has climbed 42% in 2022 amid volatility in the Nasdaq composite. But Digi stock has retreated from an intraday high of 38.95 set on Oct. 6. DGII stock slipped 2.6% to close at 34.80 on the stock market today.
Now DGII stock trades just above its 50-day moving average, also called its 10-week line. If Digi stock falls below with a big move in high volume, that would be a sell signal. But if DIGI stock bounces off the 50-day line, that would be a positive signal.
DGII stock is extended from a 25.73 entry point from a cup base. The question is whether Digi stock can form a new base.
DGII Stock Boost From Private 5G Wireless?
Digi's products and services target the "Internet of Things," industrial devices connected to the wireless internet. Demand for Digi's wireless network gateways and routers is expected to grow as businesses deploy private 5G wireless networks.
The Minnesota-based company is transitioning to managed services after acquiring Ventus Holdings in 2021 for $347.4 million in cash.
Fiscal fourth-quarter earnings for DGII stock are due Nov. 10.
The company holds a 99 Relative Strength Rating, according to IBD Stock Check-up. That means it has outperformed 99% of stocks in the IBD database in the last 12 months.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
