The stock averaged a 36.4% gain after two similar signals in the last three years
Shares of 3D geolocation services provider Nextnav Inc (NASDAQ:NN) have struggled of late, and now carry a 17.8% deficit for 2025. Last seen down 0.7% to trade at $12.84, NN is far removed from this year's peak of $18.25, but support at the $12 level has kept price action in check for the last week. Plus, a historically bullish trendline suggests tailwinds could be in store for the equity.
Per Schaeffer's Senior Quantitative Analyst Rocky White, the equity is within 0.75 of the 320-day moving average's 20-day average true range (ATR), after spending at least 80% of the last 10 days and 42 trading days above this trendline. This has happened two other times over the last three years, after which the stock was higher one month later both times, averaging a 36.4% gain. A move of similar magnitude from the equity’s current perch would put it back above $17 for the first time since late September.
The security could benefit from an unwinding of pessimism in the options pits. This is per NN's Schaeffer's put/call open interest ratio (SOIR) that sits higher than 87% of readings from the past year.