Benzinga - by MarketBeat, Benzinga Contributor.
Nothing strikes more fear in the hearts of stock market bears than two simple words: short squeeze. Like a tsunami, a short squeeze can wreak havoc on unexpectant bears as they frantically rush to cover short positions, inadvertently driving prices even higher in the process. The parabolic surge is the stuff of dreams for bulls as they see account values spike with joy. Meme stocks thrived on short squeezes in 2021.
The formula for a short squeeze includes a high short interest, a small float and a surprise catalyst or two. Here are 3 stocks with the potential for the proverbial spark in a kerosene-soaked warehouse-like short squeeze to trigger.
Symbotic
Symbotic Inc. (NASDAQ: SYM)Walmart Inc. (NYSE: WMT)Target Co. (NYSE: TGT)Albertsons Cos. (NYSE: ACI)Walmart took an 11% stake in the company and has integrated Symbiotic into all its 42 regional distribution centers. The company has plans to offer warehouse-as-a-service (WaaS) through a joint venture, GreenBox Systems, with major investor SoftBank. While SYM has a large 356 million share float, it has a high short interest of 27.13%.
Surging Growth
Symbotic CEO Rick Cohen was upbeat and commented, ""Fiscal year 2024 is off to a solid start with strong financial and operational results. I am pleased with the trajectory and goals we have planned for the rest of the year. We will continue to innovate and build deployment capacity to support growth and increased profitability for our stakeholders."
Daily Symmetrical Triangle Pattern
The daily relative strength index (RSI) is attempting to coil off the 48-band. Pullback support levels are at $38.99, $37.22, $33.93 and $29.62.
Symbiotic analyst ratings and price targets are at MarketBeat.
Intuitive Machines
Intuitive Machines Inc. (NASDAQ: LUNR)Fourth-Quarter 2023 Earnings
Intuitive Machines CEO Steve Altemus commented, "Exactly one year after going public, Intuitive Machines launched its IM-1 mission, and one week later, on February 22, 2024, we successfully landed, marking the United States' first lunar landing in over 50 years." Altemus continued, "The successful landing, recognized by the White House, NASA, and our commercial customers, fundamentally disrupted the economics of landing on the Moon while substantially retiring the costs of developing a lunar program."
Daily Descending Triangle
Wayfair
Wayfair Inc. (NYSE: W)Outperforming Brick-and-Mortar Competitors
Haverty Furniture Cos. (NYSE: HVT) La-Z-Boy Inc. (NYSE: LZB)Daily Ascending Triangle
The daily candlestick chart on W continues to trade in the daily ascending triangle pattern. Just as it appears to start breaking down through its lower ascending triangle, buyers come into potentially holding the line. The daily RSI also continues to float sideways around the 53-band. Pullback supports remain at the $58.98, $55.30, $51.83 and $48.99 levels.
The article "3 High Short Interest Stocks Ready to Squeeze " first appeared on MarketBeat.