TSN shares have pulled back more than 10% from those highs, but are now resting on technical support from their 50-day moving average. Our experience is that the shorts will likely close out their winning positions as the stock finds support.
This is a great time to point out that short squeezes don’t always happen when a stock is working against the short selling crowd, they do make money sometimes and when they do they still have to close their short positions by buying the stock back, which is what we’re looking for here.
Eye a move back to the $32 level helped by the shorts taking profits at technical support.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.