Fintech
Fintech stocks could rebound, says bullish signal
Shares of fintech companies Fidelity National Information Services Inc (NYSE:FIS) are trading at their highest level since February 2023 following a higher post-earnings gap on the charts. The stock also reclaimed support at its 50-day moving average following earnings, although the $76 level held off further gains. However, a “buy” signal is flashing which could keep the wind in the stock’s favor.
FIS chart May 092024
Specifically, FIS’s Schaeffer Volatility Index (SVI) of 22% is only 4% higher than other readings over the past year, indicating relatively attractive short-term premiums amid subdued volatility expectations.
The other four times in the last five years the stock has traded near new highs while its SVI has ranked in the bottom 20 percentile of its annual range, the stock has been higher 75% of the time and has seen a average gain in a month of 3.95%. according to data provided by Schaeffer’s senior quantitative analyst, Rocky White. A move of similar magnitude from the stock’s current level of $73.50 would take it to around $76.40.
Puts are popular among short-term traders, and a change in sentiment could help the FIS move even higher. This is according to Schaeffer’s put/call open interest ratio (SOIR) which ranks above all other readings over the past 12 months.