Ollie's Slide: Hope for Stabilization through Chart Analysis

The stock of the discount retailer Ollie's Bargain Outlet is currently dealing with a persistent downward trend after reaching a three-year high of $120 in December of last year. Currently, the price is slightly down by 1.3% and stands at $99.93. This marks the ninth loss in 11 trading sessions. However, there is a silver lining: the 126-day line, which could serve as support, shows a bullish effect on the stock. This trendline has often served as a springboard for Ollie's price performance in the past. According to Rocky White, Senior Quantitative Analyst at Schaeffer's, Ollie's has traded in a similar constellation with the 126-day line five times in the last three years. In 60% of these cases, the stock recorded an average increase of 5.2% within a month. Another positive indicator for a potential recovery is the so-called "oversold" condition of the stock, indicated by a 14-day Relative Strength Index of 16.5. This suggests potential for a short-term upswing. Options also seem to be an interesting choice. With a Schaeffer's Volatility Index of 34%, which is in the 16th percentile of the annual range, options traders expect low volatility, providing favorable trading opportunities.