Corning Inc (NYSE:GLW) stock is down 7.8% at $172.92 this afternoon, part of its larger drawdown from its June 30 record peak of $271.38. Its no surprise the tech concern has fallen 36.4% since tapping its record. However, all is not lost, as the shares near a trendline with historically bullish implications.
According to Schaeffer's Senior Quantitative Analyst Rocky White, GLW 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 19 times over the last decade, after which the stock was higher one month later 72% of the time, averaging a 4.74% gain. A similar move from the stock's current perch would put the shares at $181.12.
It's worth noting shorts have been retreating, with short interest down 13.7% during the most recent reporting period. This accounts for 2.6% of the stock's available float, or less than two days' worth of pent-up buying power.
