Here are a couple of setups I like heading into next week. Both are heavily shorted with over 20% of the float short, thus making them short squeeze candidates. Discipline is essential in trading any stock, and this is all the more true in case of heavily shorted stocks. There might be very good fundamental reasons for these stocks to be so heavily shorted but as short term technical traders, we dont care about these reasons. But the point is honor your stops with these stocks. Also, it being earnings season, be sure to check when these stocks are reporting before you play them.
BBBB - Breakout on huge volume followed by two days of consolidation. The trading range is getting narrower. Watch out for a break of 50.
Below is the 10 minute chart of the same stock showing the consolidation of the breakout. Looking good for another run next week.
CSTR - Another stock that also looks good over the 50 level.
Take care and good luck!
No comments:
Post a Comment