Redfin stock's 80-day moving average has acted as a springboard in the past
Since hitting a more than 52-week high of $15.29 on Sept. 18, real estate services stock Redfin Corp (NASDAQ:RDFN) has taken a step back on the charts. Shares are down 0.7% at $10.11 at last glance to extend an 18.2% quarterly deficit and breaching their year-to-date breakeven level. However, RDFN is still up 100% over the last 12 months, and this most recent dip has it trading near a historically bullish trendline.
Per a study from Schaeffer's Senior Quantitative Analyst Rocky White, Redfin stock is within striking distance of its 80-day moving average after trading above the trendline 80% of the time over the past two months, and closing north of the trendline in eight of the last 10 sessions. According to White's data, three similar pullbacks occurred over the last three years, with the security averaging a 19.64% pop after two of those occurrences. A move of similar magnitude would put RDFN above $12.
Short interest is down 10.7% over the last two weeks, yet the 20.08 million shares sold short make up 17.3% of the equity's total available float. It would take three days for shorts to buy back these bearish bets.