Concert Stock Looks Ready to Topple Several Layers of Resistance

The equity looks ripe for a short squeeze

Deputy Editor
Mar 17, 2022 at 2:38 PM
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Nearly a month removed from its mixed fourth-quarter earnings report, the shares of Live Nation Entertainment (NYSE:LYV) have gone by way of the broader market, with an early March selloff sending shares back below the formerly supportive 50-day moving average and the $114 level. While the equity has yet to recover from this breakdown -- and still has a ways to go before reclaiming its post-earnings highs near the $126 level -- a historically bullish signal flashing on the charts might be just what LYV needs to get a leg up in the coming month. 

According to Schaeffer's Senior Quantitative Analyst Rocky White, LYV has come within 2 percentage points of its 140-day moving average after a lengthy period above the trendline. Over the past three years, six similar pullbacks have occurred. Live Nation stock was higher one month after 67% of these signals, averaging a return of 8.8%. A similar move from the stock's current perch would put LYV just below its $120 level and well above the aforementioned dual layer of resistance it's currently facing. 

lyv march 17

A short squeeze could also put wind at the equity's back. In the last two reporting periods, short interest rose 3.5%, and now makes up 10.8% of the stock's available float, or over six days' worth of pent-up buying power. 

 




 
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