Footwear stock ON Holding AG poised for rebound after hitting moving averages support.

Footwear stock On Holding AG (NYSE: ONON) is poised for a rebound, up 3.4% at $53.97 after hitting support at its 80-day and 100-day moving averages following news of a U.S.-Vietnam trade deal. Previous pullbacks to these trendlines have led to bullish activity for the retailer.

Schaeffer’s Senior Quantitative Analyst Rocky White notes ONON is close to both trendlines’ 20-day average true range (ATR), with a history of positive outcomes after similar signals. The stock has been higher one month later 86% of the time with an average 15.7% gain after pulling back to the 80-day trendline.

ONON is currently in “oversold” territory with a 14-day relative strength index (RSI) of 29.6, hinting at a potential short-term bounce. Short interest is also high, representing 7.7% of the stock’s available float, indicating significant short covering potential.

Read more at Yahoo Finance: Footwear Stock Has Room to Run on the Charts