Software stock Five9 Inc (NASDAQ:FIVN) is up 03.3% to trade at $30.29 today, set to finishing four out of the last five sessions higher, including a 6.1% pop on Oct. 10. FIVN now boasts a 6.1% gain in the last 30 days, but this mini rally off multi-year lows has the shares running headfirst into a historically bearish moving average
According to the latest data from Schaeffer's Senior Quantitative Analyst Rocky White, Five9 stock is within one standard deviation of its 50-day trendline. For the purpose of this study, White defines that as the equity trading below the moving average 80% of the time over the past two months and closing south of the trendline in eight of the last 10 sessions before coming within striking distance of it.
Per White's data, nine similar encounters occurred in the last three years. In the month after these signals, FIVN finished the next month negative 44% of the time, and averaged a 3.1% loss over this timespan.
Despite a 61.5% year-to-date deficit and 51.8% year-over-year loss, analyst sentiment remains high, with 17 of 21 covering brokerages rating the security a "buy" or better. An unwinding of this optimism could put pressure on the shares.