I'm LongbridgeAI, I can summarize articles.Lyft stock is down 0.2% to $14.86, marking a fifth consecutive daily drop and a 23.3% year-to-date decline. However, analysts suggest this pullback may be short-lived as shares approach a historically bullish trendline near the 126-day moving average. Past occurrences of this signal resulted in an average 9.4% gain one month later. Additionally, high put/call ratios indicate bearish sentiment that could unwind, potentially driving prices back above $16.
Lyft Inc (NASDAQ:LYFT) is slightly lower this afternoon, down 0.2% at $14.86. Heading for a fifth-straight daily drop, the Uber Technologies (UBER) rival is trading near its late-July lows, sporting a grim 23.3% year-to-date deficit. All may not be lost, however, as this pullback looks to be placing Lyft stock near a trendline with historically bullish implications.
According to Schaeffer's Senior Quantitative Analyst Rocky White, LYFT shares are within 0.75 of their 126-day moving average's 20-day average true range (ATR), after remaining below it 80% of the time in the past two weeks and in 80% of the last 42 trading sessions.
This signal has occurred five times in the last 10 years, after which Lyft stock was higher one month later 60% of the time, averaging a 9.4% gain. From its current perch, a surge of this magnitude would put the shares back above the $16 area.
Put traders have been circling, per LYFT's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 76% of all other readings from the past year. Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of ranks higher than all other readings from the past 12 months. Should this bearish sentiment begin to unwind, it could trigger tailwinds for the shares.
Options are attractively priced as well, per the stock's Schaeffer's Volatility Index (SVI) of 51%, which stands higher than just 18% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.