Don't Sweat ON Semiconductor Stock's Recent Pullback

ON Semiconductor Corp (NASDAQ:ON) is down 0.6% to trade at $75.55, inching toward its fifth-straight daily loss amid today's tech weakness. Support at the 260-day moving average is keeping losses in check, however, and could serve as the springboard for an upswing if history is any indication. Year to date, the equity is up 39.3%. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, ON has traded within 0.75 times the 260-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks above the trendline. This setup has occurred eight other times over the last decade, after which the stock was higher one month later 88% of the time, averaging an 8.4% gain.  

Analyst sentiment leaves plenty of room for upgrades. Of the 29 brokerages in coverage, 17 carry a "hold" rating, compared to 10 "strong buy" and two "buy" ratings.

Short interest accounts for 7.7% of the stock's available float, or three days' worth of pent-up buying power. A short squeeze could fuel additional gains should some of these bearish bets begin to unwind.

Lastly, ON's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 90 out of 100, suggesting the equity has tended to outperform options traders' volatility expectations during the past year.