Quantum computing has been a hot topic this year, as the technology reaches critical mass. Sector leader IonQ Inc (NYSE:IONQ) sports a 412% year-over-year lead, but for 2025 it is only marginally above its year-to-date breakeven level. Despite a 1% quarterly drawdown, the recent weakness could have bullish implications, if past is precedent.
IonQ stock is within one standard deviation of its 50-day moving average. For the purpose of this study, Schaeffer’s Senior Quantitative Analyst Rocky White defines that as the equity trading above the moving average 80% of the time over the last two months, and closing north of the trendline in eight of the last 10 sessions.
Per White’s data, three similar signals have occurred during the past three years. IONQ was higher one month later 67% of the time, averaging a one-month gain of nearly 20%. From their current perch at $42.67, a move of similar magnitude would have the shares back above $50 for the first time since January.
IONQ
There’s some short squeeze potential as well. Short interest is up 3% in the most recent reporting period, and the 36.51 million shares sold short account for 13.3% of IONQ’s total available float.
There could also be an unwinding of bearish bets in the options pits. The stock’s 10-day put/call volume ratio of 1.72 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 100th percentile of readings from the past year.