Rigetti Stock's Bullish Signal Could Mean More Upside

Rigetti Computing Inc's stock (NASDAQ: RGTI) is displaying a promising upward trend, signaling potential for further gains. This bullish outlook is supported by the stock's ability to surpass its 50-day moving average, a pattern that has historically led to positive results in 56% of cases when it occurs. Over the past decade, such crossovers have resulted in an average gain of 19.19% for the equity.

Currently, Rigetti's shares are on track for their third consecutive daily increase, demonstrating resilience and momentum as they move away from their late-July lows.

Moreover, the market sentiment among traders remains overwhelmingly positive, with only 19.3% of Rigetti's available float held in short positions. This leaves ample room for potential short covering if the stock continues its upward trajectory. The ratio of 4.09 call/put volume on the International Securities Exchange, Chicago Board Options Exchange, and NASDAQ OMX PHLX further supports this bullish outlook, as it significantly exceeds the 98% of readings from the past year. This indicates that long-term traders are highly bullish on Rigetti's prospects.

Additionally, the RGTI's Schaeffer's Volatility Index (SVI) of 82% suggests that near-term option traders expect relatively low volatility. This low volatility expectation, along with the affordable pricing of options, makes it an attractive investment for those seeking potential upside with manageable risk.