Bargain Retail Stock Due for a Rebound

Discount retail stock Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI) has been on an extended descent since its Dec. 20, three-year high of $120.00. Down 1.3% at $99.93 at last glance, the stock is headed for its ninth loss in the last 11 sessions.

The 126-day moving average, which represents half a year's worth of trading, appears to be providing support today, however. And given it's history as a bullish trendline for the stock, it could soon provide OLLI with a jumping off point. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, Ollie's Bargain Outlet stock has come within striking distance of its 126-day moving average after a lengthy period above it (defined by White as 80% of the time over the past two months and 8 of the last 10 trading days) five other times over the last three years. The stock was higher one month later after 60% of these signals, averaging a 5.2% gain.   

The stock's "oversold" condition points to a potential short-term rebound as well. Specifically, OLLI's 14-day relative strength index (RSI) of 16.5 sits firmly in this territory. 

Meanwhile, options look like a good way to go when weighing in on the stock. Its Schaeffer's Volatility Index (SV) of 34% ranks in the 16th percentile of its annual range, meaning options traders are pricing in low volatility expectations.