Telehealth stock Hims & Hers Health Inc (NYSE:HIMS) just suffered asteep pullback after President Donald Trump's said Novo Nordisk's (NVO) weight-loss and diabetes drugs, Wegovy and Ozempic, should be reduced to $150 a month. The security is still up 98.9% year-to-date, however, with a floor of support lingering below at the $40 level.
At last check, HIMS was up 0.8% to trade at $47.82. It looks like the stock could continue higher, too, as those recent losses placed the shares near a long-term trendline that has historically bullish implications.
According to Schaeffer's Senior Quantitative Analyst Rocky White, Hims & Hers Health stockis within 0.75 of the 200-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 signal has occurred six other times in the past 10 years, after which the equity was higher one week later 78% of the time to average a 6.3% pop. From its current perch, a similar move would place HIMS back above $51.
It's also worth noting that HIMS has a history of exceeding options traders' volatility expectations. This is per its Schaeffer's Volatility Scorecard (SVS) of 83 out of 100.
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