A wave of bull notes could bring more buyers to the table
The shares of advertising giant Omnicom Group Inc. (NYSE:OMC) seem to be in the midst of a breakout, sporting a solid 8.6% year-to-date lead. The stock’s current perch on the charts looks promising as it finds support from the $78 level, a previous level of resistance and site of an earnings bull gap from April.
Wall Street is certainly not positioned properly for OMC’s newfound technical strength. For starters, most analysts have “hold” or worse recommendations, setting up the potential for a wave of bull notes to bring more buyers to the table.
Plus, short interest accounts for almost two weeks’ worth of buying power, based on average daily trading volumes, and the Schaeffer’s put/call open interest ratio (SOIR) of 1.52 shows a heavy put-skew among near-term speculators. Short covering and/or a shift in sentiment in the options pits could also help OMC on the charts.
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