The shares of Paysign Inc (NASDAQ:PAYS) have yet to recover from Monday's bear gap, sparked by a downgrade from BTIG. Today, the stock is down 3.7% at $13.26, looking to snap its seven-week win streak with a 24.4% weekly loss so far -- its biggest since 2016. It looks grim for PAYS right now, but there might be a glint of hope on the horizon in the form of a rare technical signal.
Specifically, PAYS pullback put it within one standard deviation of its 40-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, this signal has sounded once before, and while the five-day return was negative, Paysign saw a one-month surge of 18.2%. From where it currently sits, a similar move would put PAYS back around $15.60.
Despite Monday's drubbing, the majority of analysts are holding out hope, with three "strong buy" ratings on the board, compared to only one "strong sell." On the other hand, the 12-month consensus price target of $13.38 is right in line with current levels.
Options traders have taken a similar stance. In the last 10 days two calls have been bought for every put on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). According to data from Trade Alert, much of this activity was seemingly centered around the December 17.50 call, and the August 15 call.