Pharmaceutical name Amicus Therapeutics, Inc. (NASDAQ:FOLD) has put on quite the performance this year -- outperforming the broader S&P 500 Index (SPX) by 16% during the past two months. The security is up almost 40% year-to-date, staging an impressive rally off its 18-month lows from late December. What's more, FOLD just hit a year-to-date high of $14.62 last week.
While a familiar area of resistance at the $14.50 level has kept a tight lid on Amicus stock, it sounded a bullish signal that could send the equity back up the charts. Specifically, FOLD is trading within one standard deviation of its 40-day moving average after a lengthy stretch above it.
The six other times this signal has flashed in the past three years, the stock was positive one week later 67% of the time, and averaged a 7.14% gain. From where it currently sits at $13.54, a similar move would send the security right back below its 2019 high, at $14.51.
Analysts have been resoundingly enthusiastic on the equity, with nine "strong buy" ratings on the table, and only one "hold." Plus, the consensus 12-month target price of $18.80 sits in territory not seen by FOLD since its 2015 record highs, and represents a 40.1% premium to current levels.
Short sellers have continued to pile on their bearish bets, despite FOLD's recent spike. Short interest shot up 6.4% in the last two reporting periods. The 21.13 million shares sold short accounts for a solid 12.8% of the stock's available float. At the equity's average trading volume, it would take over eight days for traders to cover these pessimistic positions, which could lend itself to a short squeeze.
Traders might want to consider betting on Amicus Therapeutics' next leg up with options. FOLD's Schaeffer's Volatility Index (SVI) of 53% stands higher than just 17% of all other readings from the past year. This means that short-term options are relatively cheap right now.