Why Signet Jewelers Stock Could Soon Fall

An unwinding of optimism could also weigh on SIG

Deputy Editor
Nov 29, 2022 at 10:56 AM
facebook twitter linkedin

Shares of luxury retailer Signet Jewelers Ltd. (NYSE:SIG) are 1.6% higher today to trade at $63.71. The stock is holding well above its May annual low of $48.31, and holds a 10.8% quarterly lead. However, today's pop has SIG trading near a historically bearish trendline that pressure the shares lower once again.

Per data compiled by Schaeffer's Senior Quantitative Analyst Rock White, Signet Jewelers stock has recently come within one standard deviation of its 200-day moving average, following an extended period below the trendline. The equity has seen five similar pullbacks within the past three years, which has resulted in an average 21-day loss of 7% in 60% of the circumstances.

SIG Chart November 292022

Options traders have been betting bullishly of late. In fact, at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 5.77 calls have been bought for every put over the last 10 days-- a ratio that sits higher than 95% of all other readings from the past year. An unwinding of this optimism could put additional pressure on SIG.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners