Software Giant Looking to Cool Down After 2026 High

Atlassian Corp (NASDAQ:TEAM) shares are down 0.2% at $206.31, reversing earlier gains after a Barclays price-target hike to $222 from $172. The software stock initially jumped to a 15-month high of $212.84 after the bull note, but a historically bearish signal suggests more downside could be ahead.

TEAM sports a 50-day call/put volume ratio of 1.42 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all other readings from the past year.

Over the last three years, there have been nine instances in which the equity's 50-day buy-to-open call/put ratio crossed above 1.0 and moved into the 90th percentile or above. Per Schaeffer's Senior Quantitative Analyst Rocky White, the stock was lower one month later 78% of the time after these signals, averaging a 10.3% loss.

Analysts have been leaning bullish leading up to the event with 23 of the 29 brokerages covering TEAM carrying a "buy" or better rating. Shorts have been retreating as well, with short interest down 17.8% over the last two reporting periods. 

It's also worth noting TEAM sports a 14-day Relative Strength Index (RSI) of 65 -- on the cusp of "overbought" territory, suggesting a short-term breather may be in the cards.