Laura McCandless
1 min read
In This Article:
The shares of language learning platform Duolingo Inc (NASDAQ:DUOL) are down 2.7% at $411.54 at last glance, looking to extend their recent slide. The stock hung around its May 14 record high of $544.93 for a few weeks before beginning a sharp descent lower, marking only three positive days since June 6.
On the side of the bulls, however, DUOL is still up 26.9% in 2025, and currently flashing a historically bullish signal. Per Schaeffer's Senior Quantitative Analyst Rocky White, the recent pullback has Duolingo stock within striking distance of its 80-day moving average.
More specifically, the stock is within 0.75 of the trendline's 20-day average true range (ATR) after spending at least 80% of the last 10 days and 80% of the last two months above it. Within these parameters, six other signals occurred in the past three years. DUOL was higher one month later 67% of the time after those instances, averaging a large 15.7% gain. A move of similar magnitude would have the shares back up above $476, recovering a good portion of its recent losses.
Also in the stock's favor, its 14-day relative strength index (RSI) of 13.2 sits firmly in "oversold" territory, pointing to a potential short-term bounce. An unwinding of pessimism amongst options traders could provide tailwinds as well, per DUOL's 50-day put/call volume ratio of 1.83 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 98% of readings from the past year.
