C3.ai Stock Nears Key Trendline Ahead of Earnings

Core Viewpoint - C3.ai Inc (NYSE:AI) stock is experiencing a decline ahead of its fiscal third-quarter earnings report, but it is trading near a historically bullish trendline that may support a rebound in the near future [1][2]. Stock Performance - The stock is currently down 6.3% to $28.87 and has lost 17.5% over the past three months, with a year-to-date decline of 16.1% [1]. - C3.ai is testing its 126-day moving average, which has historically led to bullish returns [2]. - In the past three years, the stock has approached this moving average after spending 80% of the last two months above it, with four previous instances [2]. Historical Trends - Following previous signals of approaching the moving average, the stock has averaged an 8.6% gain one month later, which would place it above$ 31 if a similar move occurs [3]. - The stock has shown mixed post-earnings performances, with notable gains of 24.5% and 19.4% after earnings in February and May, respectively [4]. - Over the past two years, the average post-earnings move has been 15.3%, with current options pricing indicating an expected swing of 18.1% [4]. Market Sentiment - The sentiment in the options market indicates elevated pessimism, with a 10-day put/call volume ratio in the 86th percentile of annual readings [5]. - If traders unwind their bearish positions, it could provide positive momentum for the stock [5]. Analyst Ratings - Analyst coverage remains cautious, with 10 out of 14 brokerages rating the stock as a "hold" or worse [6]. - A strong earnings reaction could lead analysts to reassess their ratings, potentially driving additional upside [6].