Shares hit a 52-week high during the June expiry week
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Shares of Seagate Technology Holdings PLC (NASDAQ:STX) just broke and retested their March resistance level on the charts. What’s more, the stock hit a 52-week high during the June expiry week. With this solid technical foundation in place, we’re recommending a new long position on STX.
The security could benefit from shifting sentiment. Despite Seagate Technology stock’s 66.7% and 20.9% year-over-year and year-to-date gain, respectively, 12 of 26 covering brokerages still recommend a tepid “hold” or worse. It’s also worth noting that shares rallied amid a rise in short interest since March, and it would take five days for these traders to buy back their bearish bets.
Our recommended September call has a leverage ratio of 7.1, and will double on a 14.9% rise in the underlying security.