Signal Says Aptiv Stock Could Conquer Yet Another Record

The shares of Aptiv PLC (NYSE:APTV) are down 1.9% at $119.60 at last check, just days after the security hit a Nov. 24, all-time-high of $122.01. And while the security is cooling off slightly, it has gained 56.4% in the last six months, with support from the 20-day moving average over the past several weeks. Now, a historic bullish signal flashing on the charts indicates even more upside may be in store for APTV in the coming weeks.

Specifically, the stock's recent peak comes amid historically low implied volatility (IV), which has been a bullish combination for the equity in the past. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have only been two different times in the past five years when APTV was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower -- as is the case with the security's current SVI of 39.1%, which sits just below the 15th percentile of its 12-month range.

Data shows Aptiv stock was higher a month later, averaging a 3.2% return for that time period. From its current perch, a move of similar magnitude would put APTV just above the $123 mark, at yet another record peak.

Shorts are already hitting the exits, though there is still some pessimism left to be unwound, which could push the security even higher. Short interest is down 27.9% in the last two reporting periods, but the 4.14 million shares sold short still account for 1.6% of the stock's available float.