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DGII Stock: will this Internet of Things continue to beat the bear market?

International Digi (DG II) withstood the bear market in 2022. But investors should watch if DGII stock falls below its 50-day moving average, which would be a sell signal.




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DGII stock soared 42% in 2022 amid volatility in the Nasdaq composite. But Digi stock pulled back from an intraday high of 38.95 set on Oct. 6. DGII stock slipped 2.5% to 34.83 in morning trading on the stock market today.

Now, DGII stock is trading just above its 50-day moving average, also called its 10-week line. If Digi’s 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.

The DGII stock is extended from an entry point of 25.73 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 increase as enterprises deploy private 5G wireless networks.

The Minnesota-based company is moving into managed services after acquiring Ventus Holdings in 2021 for $347.4 million in cash.

Fiscal fourth quarter results for DGII shares are expected on November 10.

The company holds a relative strength rating of 99, according to IBD Stock Check. This means that it has outperformed 99% of stocks in the IBD database over the past 12 months.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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