A bullish trendline could help ON get closer to record highs
ON Semiconductor Corp (NASDAQ:ON) stock is down 1.3% to trade at $91.03 at last check without an apparent catalyst. The security is up more than 46% year to date, reaching a July 31 peak of $111.35 before cooling off. This pullback brought the the stock closer to a historically bullish trendline, however, meaning now could be the right time to bet on its next move up the charts.
Specifically, ON Semiconductor stock is within one standard deviation of its 80-day moving average, per Schaeffer's Senior Quantitative Analyst Rocky White. During the past three years ON saw no fewer than five similar signals occur, finishing higher one month later 80% of the time with an average 13.9% gain. A move of comparable magnitude would place the shares back above $103.
Short-term options traders are more bearish than usual, and a change of heart could provide tailwinds. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.46 that ranks higher than 95% of readings from the last 12 months.
Short sellers could still get squeezed out further, too. While short interest dipped 11.8% in the most recent reporting period, the 25.78 million shares sold short still make up 6% of ON's available float.