Bull & Bear: Moody's Corporation

Shares of Moody's Corporation MCO are trading lower on the session by 0.16%, trading at $37.84. With shares sitting on the 20-day moving average, you have to wonder where they are heading next… Bulls: Bulls will note that Moody's Corporation has been on a tear over the past 100 days, with the 20-day moving average being a major buy point over that entire period. The stock has formed many consolidation and breakout patterns, all of which have been triggered off of the 20-day. Bulls will also note that the 50-day and 200-day moving averages are upward sloping. Interestingly, shares are also far from being considered overbought. Bulls will also note the 10.88% short interest in Moody's Corporation, which will likely fuel any small rally into a much larger one. A bullish trader could buy the July $39/41 call spread for a net debit of $0.60. Bears: Bears will note that Moody's Corporation looks to have put in a high volume top on April 27th, as shares have traded low ever since. This could lead to bulls getting trapped in the name as they buy on theoretical support (the 20-day). This could leap to a hard downdraught in shares. Bears will note that Moody's Corporation is also trading far above the 50-day and 200-day moving averages, which should lead to some mean reversion. A bearish trader could buy the August $37/33/30 put tree for a net debit of $0.92. Moody's Corporation is a provider of credit ratings; credit and economic related research, data and analytical tools, risk management software and quantitative credit risk measures, credit portfolio management solutions, training and financial credentialing and certification services.