Buy These 3 Stocks, Then Let the Short Squeeze Do the Rest

Technical strength will scorch the bears in CHK, DLTR and GRMN

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Buy These 3 Stocks, Then Let the Short Squeeze Do the Rest

Chesapeake Energy (CHK)

101613CHK 300x186 Buy These 3 Stocks, Then Let the Short Squeeze Do the Rest
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Having emerged from the chaos that embroiled Chesapeake Energy stock through 2012, this oil and gas company is emerging as a relative strength leader worthy of the bulls’ attention.

CHK recently broke through the technically important $25 level — a move that garnered the attention of short sellers as we’ve seen short interest rise, indicating the bears are trying to call a top.

The problem with the shorts’ strategy is that the break above this price has also attracted technical buyers, as the stock has now returned better than 20% during the past three months. We could see a slight pullback to the $26 level, but expect to see technical support that will lead the stock higher, causing those shorts to throw in the towel and spark a short squeeze.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/short-squeeze-chk-grmn-dltr/.

©2014 InvestorPlace Media, LLC

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