Q2 STOCKS TO BUY

Apple Supplier Stock On Sale

ADSK shares could rally into December, if past is prologue

Nov 16, 2018 at 10:33 AM
facebook X logo linkedin


While Autodesk, Inc. (NASDAQ:ADSK) hasn't officially set a date to report quarterly earnings, the software concern is expected to unveil its third-quarter figures relatively soon (Thomson Reuters Eikon has a tentative date of Tuesday, Nov. 20). While several Apple suppliers have taken it on the chin in recent weeks, ADSK's recent pullback could be a buying opportunity, if history is any indicator.

After a post-earnings bull gap in August, Autodesk shares went on to touch an all-time high of $159.94 on Aug. 27. Since then, however, the equity has surrendered roughly 16% to trade at $134.37, and is back in a familiar range; the $125-$140 region contained the stock from March until the aforementioned August rally.

However, ADSK is now within one standard deviation of its 320-day moving average, after a lengthy stretch above this trendline. After similar pullbacks over the past three years, ADSK was higher one month later 67% of the time, averaging an impressive gain of 8.8%, per data from Schaeffer's Quantitative Analyst Chris Prybal.

ADSK stock chart nov 16

Should Autodesk once again enjoy a positive earnings reaction soon, an unwinding of pessimism in the options pits could propel the shares higher. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.23 registers in the 89th percentile of its annual range, indicating that near-term options traders are much more put-heavy than usual at the moment.

Short sellers could also be caught off-guard, if ADSK's pullback to the 320-day once again results in a short-term rally. Short interest on the iPad supplier surged nearly 41% in the past two reporting periods, to close to 7.5 million shares.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter