The shares are once again bouncing from their 160-day moving average
The shares of Glu Mobile Inc. (NASDAQ:GLUU) are up 104.4% year-to-date and are on pace for their best year since 2009. More recently, the stock surged after Cowen named it a top pick for 2019, bringing it within striking distance of its mid-October multi-year peak. GLUU has since pulled back to its 160-day moving average, which, if history is any indicator, could mean a big rally into the New Year.
Diving deeper, the stock has pulled back to within one standard deviation of it 160-day, trading today at $7.63. In the five other times over the past three years GLUU has retreated to this trendline after a significant stretch above it, the equity was higher a month later each time.
What's more, the security averaged a one-month gain of 10.9%, per data from Schaeffer's Senior Quantitative Analyst Rocky White. Another move of this magnitude would put GLUU stock near $8.45 for the first time since November 2007, based on its current level.
The shares could enjoy some bigger tailwinds, should pessimism start to unwind. Short interest rose 14.3% in the last reporting period to 7.55 million shares, or nearly 7% of the stock's available float. At the equity's average daily trading volume, it would take three days for traders to cover their bearish bets.