This Software Stock Bull Signal Has Never Been Wrong

Palantir Technologies Inc. (NASDAQ:PLTR) stock is 2.1% lower to trade at $165.61 this afternoon, struggling to maintain its recent bounce off the $160 area, and still sporting a 6.5% year-to-date deficit. Despite brushing off its upbeat Q3, the software giant's rebound could be set to resume, with a bull signal now flashing.

Per Schaeffer's Senior Quantitative Analyst Rocky White, Palantir stock has traded within 0.75 times the 100-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 five other times over the last decade, after which the stock was higher one month later every time, averaging a 5.3% gain. From its current perch, a shift of this magnitude would put PLTR back just shy of $175.

Bearish attention could be due for an unwind. This is per Schaeffer's put/call open interest ratio (SOIR) of 1.12, which sits in the 91st percentile of its annual range, suggesting short-term option players have rarely been more put-heavy during the past 12 months.

Options are looking affordable as well. This is per PLTR's Schaeffer's Volatility Index (SVI) of 55%, which stands higher than just 34% of all other readings from the past year.