TripAdvisor Stock Looks Due for a Short-Term Bounce

Though TripAdvisor Inc (NASDAQ:TRIP) stock has pulled back from its Sept. 19, 52-week-high of $20.16, a short-term bounce could soon be on the way. The shares were last seen down 4.7% to trade at $14.68, a level that kept losses in check in October. Furthermore, the stock has come into contact with a historically bullish trendline.

Per Schaeffer's Senior Quantitative Analyst Rocky White, the equity is now within 0.75 of the 320-day moving average's 20-day average true range (ATR) after remaining above it 80% of the time during the last two weeks and 80% of the last 42 trading sessions. This signal has occurred two other times over the past 10 years, after which the stock was higher one month later 75% of the time with an average 15.9% gain. 

Short covering could give TRIP a lift as well. Short interest represents a whopping 21.9% of the stock's available float, and would take nearly 10 days to cover at its average pace of trading.