Apparel and sporting goods name Academy Sports and Outdoors (ASO) is in the midst of a pullback, following a long-term climb up the charts. The shares bounced off an annual low of $25.10 in May 2022, but by mid-April touched a record high of $69.02. The shares’ recent drop is looking like an ideal entry point for contrarians, especially as ASO nears a historically bullish trendline.
Specifically, over the past three years, there were six other occasions where Academy Sports and Outdoors stock was within one standard deviation of its 100-day moving average after spending a significant period above it, according to Schaeffer’s Senior Quantitative Analyst Rocky White. One month after testing this trendline, the security was higher 83% of the time, and sported an average one-month return of 14.1%. From its current perch of $60.26, a move of similar magnitude would put the stock at $68.75 — within a chip-shot of a fresh record high.
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