The security pulled back to a historically bullish trendline
Snowflake Inc (NYSE:SNOW) stock is up 0.2% at $172.85 at last check, bucking today's broader market pullback. The equity recently ran into resistance at the $195 region, but still boasts a 20% lead for 2023, and could soon sprint even higher thanks to a historically bullish signal now flashing.
According to Schaeffer's Senior Quantitative Analyst Rocky White, Snowflake stock is trading within one standard deviation of its 50-day moving average. The equity has seen seven similar signals in the past three years, and was positive one month later 86% of the time, averaging a 7.9% gain. A comparable move would place SNOW back above $185.
Options traders lean bullish. This is per SNOW's 10-day call/put volume ratio of 2.25 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 87% of readings from the last year. This means calls have been picked up at a much faster-than-usual rate clip in the last two weeks.
Now could be an ideal time to weigh in with options, too. This is per SNOW's Schaeffer's Volatility Index (SVI) reading of 46% that stands in the low 6th percentile of its 12-month range, indicating these traders are pricing in lower-than-usual volatility expectations.