ENVX is flashing a "buy" signal on the charts
Electrical stock Enovix Corp (NASDAQ:ENVX) is down 1.6% at $10.04 today, on track for only its second loss in the last 11 sessions. Today's pullback could be short-lived, too, as the recent rally has ENVX flashing a historically bullish signal.
ENVX just moved above the top band of its 20-day Bollinger Bands. Per Schaeffer's Senior Quantitative Analyst Rocky White, the shares moved higher the past nine times this occurred, averaging a 21-day gain of 11.5%. From its current perch, a similar move would put the equity back above $11.
A short squeeze could keep wind at Enovix stock's back. Though short interest has started to unwind, it still represents 28.7% of the stock's available float, or nearly eight days' worth of pent-up buying power.
When weighing in on ENVX, options look like a good way to go. This is per the equity's Schaeffer's Volatility Scorecard (SVS) of 94 out of 100, showing the stock has exceeded options traders' volatility expectations over the past year.