Electrical Stock Enovix Corp Sees Bullish Signal Amidst Recent Rally
* ENVX Shares Flashing Green After Recent Breakout*
Enovix Corp (NASDAQ:ENVX) is currently trading at $10.04, down 1.6% for the day, but this minor setback may be short-lived. The stock has been on a tear lately, and a historically bullish signal has just been triggered.
Bollinger Bands Signal Further Upside
The recent rally has pushed ENVX above the top band of its 20-day Bollinger Bands, a rare occurrence that has historically led to further gains. According to Schaeffer’s Senior Quantitative Analyst Rocky White, in the past nine instances where this has happened, the stock has averaged a 21-day gain of 11.5%. If history repeats itself, ENVX could soon find itself back above $11.
Short Squeeze Potential Adds Fuel to the Fire
A potential short squeeze could also contribute to ENVX’s upward momentum. Despite a recent decline in short interest, it still accounts for a significant 28.7% of the stock’s available float, equivalent to nearly eight days’ worth of buying power. This pent-up demand could help propel the stock higher if triggered.
Options Trading Looks Attractive
When considering ENVX, options trading appears to be a promising strategy. The stock’s Schaeffer’s Volatility Scorecard (SVS) of 94 out of 100 indicates that it has consistently exceeded options traders’ volatility expectations over the past year. This suggests that options traders may be underestimating the stock’s potential, making it an attractive opportunity for those looking to capitalize on ENVX’s momentum.
Leave a Reply