Pullbacks to the 80-day moving average have been promising for MOS
The shares of Mosaic Co (NYSE:MOS) are trading flat, down 0.2% to trade at $38.12 at last check, amid a broader market pullback. The security's bounce off its June 1, one-year low of $31.49 fell short of the $43 region before another run lower, bringing its year-over-year deficit to over 36%. There's a good chance the equity could climb back up the charts, though, thanks to a trendline with historically bullish implications.
The trendline is question is Mosaic stock's 80-day moving average, which is just one standard deviation away, per Schaeffer's Senior Quantitative Analyst Rocky White. Over the last three years, MOS saw five similar signals, finishing higher one month later 60% of the time with an average 8.2% gain. A comparable move would place the shares back above $41.
A shift in analyst sentiment could generate tailwinds. Of the 15 brokerages in coverage, 12 still rate the equity a tepid "hold" or worse, leaving ample room for upgrades moving forward.
Now looks like a good time for options traders to weigh in, as MOS boasts attractively priced premiums. The stock's Schaeffer's Volatility Index (SVI) of 35% sits in the 3rd percentile of its annual range, suggesting options traders are pricing in low volatility expectations.