Commercial Metals Company
Click to Enlarge Commercial Metals Company (CMC), a $21 billion metal recycler, is benefiting from a positive move in the materials sector as investors begin to position themselves for increases in demand for raw materials.
Like other materials companies, the fundamental picture has been muddy with volatile earnings results, but the chart action presents a breakout opportunity as the midcap presses against the $16.20 level. Short sellers have shorted more than nine times CMC’s average daily volume — shares they will have to cover when the stock breaks higher. The chances of a breakout are increased with rising technical support just below the current price from its 20- and 50-day moving averages.
Watch for the shorts to squeeze this one to $17.50 — a move of more than 8% from here.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.