Shares of Credo Technology Group Holding Ltd (NASDAQ:CRDO) are climbing 6.3%, last seen at $215.43. The equity is enjoying a pivot off the $200 floor, following a six-day losing streak after once again being rejected by the $280 ceiling. Despite its 20% deficit the stock as acquired this quarter, a historically bullish trendline remains just under foot.
According to Schaeffer's Senior Quantitative Analyst Rocky White, CRDO 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 five times over the last decade, after which the stock was higher one month later 80% of the time, averaging a 9.5% gain. A shift of similar magnitude would put the security near $225.
Bears have been circling the equity more than usual, despite calls winning out on an absolute basis. This is per CRDO's 10-day put/call volume ratio of 0.58 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 82nd annual percentile of its annual range. Should this bearish sentiment begin to unwind, it could trigger more tailwinds for the shares.
