Energy Stock Pullback Could Yield Big Returns

Group 1 - The stock has recently pulled back to its historically bullish 50-day moving average, which has produced returns of 23.2% for the shares a month later in 67% of circumstances over the past three years [1] - This trendline aligns with a 50% year-over-year return level, which is triple this year's low of $10.95, as well as the 38.2% Fibonacci retracement of the stock's IPO highs and lows [1] - Short interest is decreasing from all-time highs, down 23.2% in the most recent reporting period, indicating a potential shift in market sentiment [4][5] Group 2 - Implied volatility (IV) is at a reasonable level of 120%, considering mid-September earnings and the historical volatility (HV) of 112% over the past 63 days [4] - The recommended September call option could double at a level prior to the average 12-month target of $17, reflecting a 41.4% rise in the underlying security [4] - The demand for A.I. power is creating more opportunities for stock traders, suggesting a growing market for companies involved in A.I. technologies [6]