MTCH's 80-day moving average could catapult the security higher once again
The shares of online dating giant Match Group Inc (NASDAQ:MTCH) are higher today, up 1.8% at $155.56 at last check. The last time we checked in on the company, though, shares were pulling back after a lukewarm earnings report, before surging all the way up to a Feb. 11 all-time high of $174.68. And while Match stock has cooled off from that peak, it still sports a 139.4% year-over-year lead. What's more, this recent pullback has placed the equity near a historically bullish trendline, which could catapult shares even higher in the coming weeks.
More specifically, the security just came within one standard deviation of its 80-day moving average, after spending several weeks above this key trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals have occurred in the past three years. In 83% of those cases, the equity enjoyed a positive return a month later, averaging a 14% gain. From its current perch, a move of similar magnitude would put MTCH just over the $177 mark, marking a brand new record peak.
A short squeeze could create additional tailwinds for Match stock, pushing shares higher still. Short interest rose 4.6% in the most recent reporting period, and the 12.29 million shares sold short make up a whopping 17.3% of the security's available float, or nearly a week's worth of pent-up buying power.
Now seems like an opportune time to weigh in on the MTCH's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 44% sits higher than just 8% of all other readings in its annual range. In other words, options players are pricing in relatively low volatility expectations right now.