2 Reasons To Buy The Dip On Celsius Stock

Core Insights - Celsius Holdings (CELH) experienced a significant stock decline of 24.8% following its third-quarter earnings report, despite exceeding earnings and revenue estimates [1] - Concerns regarding a channel change related to the newly acquired Alani Nu brand have negatively impacted investor sentiment [1] - The stock's drop marked its worst single-session decline since March 2021 [1] Stock Performance and Trends - Recent fluctuations in the stock price have led to frustration among investors attempting to capitalize on perceived buying opportunities [2] - CELH is currently testing a historically bullish trendline, with the stock trading above its 320-day moving average 80% of the time over the past two months [3] - Historical data indicates that similar signals in the past three years resulted in a 71% chance of the stock being higher one month later, averaging a 6.8% gain [4] Support Levels and Indicators - The stock is approaching a critical support level at the psychologically significant $40 mark [4] - The 14-Day Relative Strength Index (RSI) is in "oversold" territory at 20, indicating potential for a rebound [6] - Short interest has decreased by 16.2% in recent reporting periods, but 14.92 million shares sold short still represent 9.1% of the total float [6] Options Market Sentiment - A potential unwinding of pessimism in the options market could provide additional support for the stock [7] - The 10-day put/call volume ratio of 1.72 is in the highest percentile of its annual range, indicating a high level of bearish sentiment [7] - The Schaeffer's Volatility Index (SVI) of 57% ranks in the 26th percentile of its annual range, reflecting post-earnings volatility [7]