Block Stock Flashing Bullish Signal After Pullback

Fintech stock Block Inc (NYSE:XYZ) is up 1.6% at $80.45 at last glance, enjoying a 23.1% gain since the start of the year. The shares staged a sharp pullback last week, extending its fall from an Aug. 27, 52-week high of $86.90, though the 80-day moving average swooped in to keep losses in check.

Plus, per Schaeffer's Senior Quantitative Analyst Rocky White, XYZ has traded 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 the trendline. This setup has occurred 14 other times over the last decade, after which the stock was higher one month later 62% of the time, averaging a 4.8% gain.

Now also looks like a good time to weigh in on the equity's next move with options. Block stock's Schaeffer’s Volatility Index (SVI) of 39% sits in the low ninth percentile of its annual range, suggesting options traders are pricing in relatively low volatility expectations at the moment.