NCNO Stage 3 Topping: Deep Faulty Base, 36% Off Highs

Posted on by Eben@CANSLIM Research
NCNO daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY — CANSLIM Research

NCNO is consolidating in a Stage 3 topping pattern, with price churning around a declining 30-week moving average. The 49-week base is classified as deep and faulty, with a 57% depth that historically carries an elevated failure rate. With the stock 36% below its high and a cautious, deteriorating sentiment score, the technical setup suggests distribution rather than accumulation.

As of 2026-08-14 · Close $20.81

Stage 3 (Topping) — Price churning around the 30-week MA — topping consolidation (30-week MA 6-week slope: -6.13%)

⚠️ Faulty cup warning: the base is 57.1% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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