Why This Tech Stock Could Enjoy a Short-Term Pop

Mosaic Co (NYSE:MOS) stock is down 2% to trade at $26.39 at last glance, despite news that Barclays (BCS) hiked its stake in the tech giant by 55.6% in the third quarter, per a a 55.6% in the third quarter, according to a Securities and Exchange Commission (SEC) filing. The shares have taken a breather from their February rally to three-month highs, but still sport a 10.4% year-to-date lead. Another boost may be around the corner, however, as a bullish signal is now flashing.

Per Schaeffer's Senior Quantitative Analyst Rocky White, Mosaic stock is now within 0.75 of the 80-day moving average's 20-day average true range (ATR), after remaining above it 80% of the time in the last two weeks and in 80% of the last 42 trading sessions. This signal has occurred nine other times over the past 10 years, after which the security was higher one month later 67% of the time, with an average 4.4% pop.

An unwinding of pessimism could generate additional tailwinds for MOS. Of the 18 firms in coverage, 11 still call the stock a "hold" or worse. Plus, short interest climbed 19.6% in the most recent reporting period, and now makes up 5.9% of the equity's available float.

It's also worth noting that the stock's Schaeffer's Volatility Scorecard (SVS) comes in at 86 out of 100. This indicates that MOS has consistently realized higher volatility than its options have priced in.