ALLY ready for records, says Bull Signal
Shares of consumer credit firm Ally Financial (ALLY) have soared in the charts over the past year, peaking with an all-time high of $ 47.30 on March 18. The stock is now up nearly 200% year-over-year and has already reached 28.3% in 2021. And while the stock has fallen in recent sessions, this latest drop has brought ALLY to Trade near a historically bullish trendline that could cause capital to climb past its aforementioned highs.
Specifically, Ally Financial’s stock has just come within one standard deviation of its 40-day moving average, having spent a significant amount of time above that key trendline. According to data from Rocky White, senior quantitative analyst at Schaeffer, nine similar signals have occurred in the past three years. In 89% of these cases, stocks enjoyed a positive return one month later, with an average gain of 10%. From its current perch of $ 45.77, a move of similar magnitude would place ALLY at $ 50.35.
A short squeeze could fuel additional gains for the action. Short interest has risen 74.3% in the last two reporting periods, and the 14.79 million shares sold short represent 4% of the stock’s available free float, more than three days of power. repressed purchase.
Premiums are reasonably priced at the moment, according to ALLY’s Schaeffer Volatility Index (SVI) of 38%, which sits above just 2% of last year’s readings. This indicates that options players are valuing relatively low volatility expectations – a boon for premium buyers.