Data Center Stock Pulling Back Toward Key Support

Vertiv Holdings Co (NYSE:VRT) shares were last seen down 1.4% at $296.67, poised to log their fourth loss in the last five sessions. Year-to-date, however, the equity is still boasting a 128% lead, and just came into contract with a historically bullish trendline. 

According to Schaeffer's Senior Quantitative Analyst Rocky White, VRT is trading within 0.75 times the 80-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared eight times during the last decade. One month later, the stock was higher 88% of the time after these signals, averaging a 9.5% gain. A comparable rally from current levels would place Vertiv stock above $324. 

Furthermore, the manufacturer sits on the cusp of "oversold" territory, per its 14-day relative strength index (RSI) of 31.