ONON looks ready to rebound after a dismal June
Footwear stock On Holding AG (NYSE:ONON) looks ready to make a comeback after its June losses. The shares were last seen up 3.4% at $53.97, bouncing off support at their 80-day and 100-day moving averages after news of the U.S.-Vietnam trade deal. Plus, pullbacks to both of these trendlines have preceded bullish activity for the retailer in the past.
Per Schaeffer's Senior Quantitative Analyst Rocky White, ONON is within 0.75 of both trendlines' 20-day average true range (ATR) after spending at least 8 of the last 10 days and 80% of the last two months above them.
Within this parameters, ONON has pulled back to the 80-day trendline seven other times in the past three years. The stock was higher one month later 86% of the time after these signals with an average 15.7% gain. The 100-day moving average has seen six similar signals during that time, after which the shares were higher one month later 83% of the time with an average 13.6% gain.

The security is also in "oversold" territory, per its 14-day relative strength index (RSI) of 29.6. This could be indicative of a short-term bounce.
Plus, ONON has plenty of short covering potential. Short interest has been building, and now represents 7.7% of the stock's available float -- over three days' worth of pent-up buying power.