Electrical supply Enovix Corp (NASDAQ:ENVX) is down 1.6% today to $10.04 and is on pace for just its second loss in the last 11 sessions. Today’s pullback could also be short-lived as ENVX has given a historically bullish signal due to the recent rally.
ENVX just broke above the high band of its 20-day period Bollinger bands. According to Schaeffer’s Senior Quantitative Analyst Rocky White, shares are up nine times in the past, for a 21-day average gain of 11.5%. From its current position, a similar move would take the stock price back above $11.
A short squeeze could keep the wind at the back of Enovix stock. Although short interest is starting to decline, it still represents 28.7% of the available stock price, or almost eight days of pent-up purchasing power.
Looking at ENVX, the options seem like a good choice. This is according to equity Schaeffer’s Volatility Scorecard (SVS) of 94 out of 100, showing that the stock has exceeded option traders’ volatility expectations over the past year.
