VRT looks ready to move past its one-year peak
Vertiv Holdings Co (NYSE:VRT) stock is down 1.6% to trade at $23.42 at last check, taking a breather from its June 26, one-year high of $24.25. The Ohio-based electric components name still boasts a 143.2% year-over-year lead, though, with long-term support at its 20-day moving average. More highs could be within the reach, too, thanks to this historically bullish signal.
According to Schaeffer's Quantitative Analyst Rocky White, Vertiv stock's recent rally comes amid historically low implied volatility (IV), which has been a bullish combination for the shares in the past. White's data shows six other signals during the past five years when VRT was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower.
This is currently the case with the VRT's SVI of 42%, which ranks at the bottom of its annual range. One month after these signals, the shares were higher 83% of the time to average a 6% pop. From its current perch, a move of comparable magnitude would put the security at a brand new one-year peak of $24.82.
Options traders are overwhelmingly bullish toward the stock. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), VRT's 10-day call/put volume ratio of 78.20 ranks higher than all readings from the past year.