PAYS Stock Flashes Bull Signal After Huge Pullback

Analysts and options traders are still taking a bullish stance on the stock

Digital Content Manager
Jul 25, 2019 at 1:15 PM
facebook twitter linkedin


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.

PAYS July 25

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. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners