Energy drink stock Celsius Holdings Inc (NASDAQ:CELH) has been pulling back this month, following its meteoric rise to 52-week highs at the end of August. The shares are still up 94.4% year to date, however, and underlying technical support could point to a short-term bounce soon.
Per Schaeffer’s Senior Quantitative Analyst Rocky White, AIG is within 0.75 of the 50-day moving average’s 20-day average true range (ATR), after spending at least 80% of the last 10 days and 80% of the last two months above it. This has happened six other times over the past three years, after which the equity was higher one month later 67% of the time, averaging a 9.4% gain. A move of similar magnitude from the security’s current perch at $51.23 would put it at $56.04, much closer to its Aug. 29 peak of $63.50.
The 80-day trendline sits below as well, right under the $50 level. This region also happens to be the stock’s early-August post-bull gap level, and the site of solid support from late 2023 through early 2024.
There is plenty of short squeeze potential too. Short interest represents 11.4% of the stock’s available float, or three days’ worth of pent-up buying power.
When weighing in on Celsius stock’s next move, options look like an affordable way to go. Options traders are pricing in low volatility expectations at the moment, per CELH’s Schaeffer’s Volatility Index (SVI) of 47%, which ranks in the low 8th percentile of its annual range.
Leave a comment