Wall Street is up to more than just a simple squeezing of bears this week in the major averages. But if investors want added fuel in purchasing a sustainable bottom, select most-shorted stocks can provide that for smarter buy decisions.
At last the price action looks to be the real deal for investors on the hunt for bargains. The reason is a market-based follow-through day. History has shown no bull market stands a fighting chance without the key price and volume event in place.
And Thursday saw just that sort of confirmation in the Nasdaq to support a more favorable environment for purchasing stocks.
Today let’s look at three market-leading, most-shorted stocks to buy in the Nasdaq whose price charts are shaping up as we enter a less gloomy June packed with sizzling profit potential.
| Ticker | Company | Price |
| LCID | Lucid Motors | $19.78 |
| MRNA | Modern | $146.76 |
| COIN | Coinbase Global | $73.59 |
Most-Shorted Stocks to Buy: Lucid Motors (LCID)
Source: Charts by TradingView
Lucid Motors (NASDAQ:LCID) is the first of our leading Nasdaq-listed, most-shorted stocks to buy.
The EV luxury play has been hailed as Tesla’s (NASDAQ:TSLA) heir apparent. That may or may not come to fruition. Still, with short interest of 27%, industry accolades and successfully putting the rubber to the road with its Lucid Dream Edition, LCID shares do have a lot in common with TSLA stock’s early days.
To be fair, Covid-driven supply chain challenges, inflation and ramping interest rates have caused some hiccups along the way such. Reduced production guidance earlier this year and the delayed launch of this most-shorted stock’s Gravity SUV have found bears steering the action with LCID stock down more than 75% this year.
Technically though, it’s time to appreciate that all trends do end and today the advantage is favoring a bullish cycle change. A bullish weekly hammer has been confirmed to complete a larger undercut, triple-bottoming formation.
Along with favorable stochastics support, indications of a bearish move toward $10 and Lucid’s all-time-low are now in the rearview mirror and firmly replaced by expectations of a larger bullish phase in this most-shorted stock’s shares.
Moderna (MRNA)
Source: Charts by TradingView
Moderna (NASDAQ:MRNA) is the next of our most-shorted stocks to purchase, and for a couple very compelling reasons.
MRNA stock isn’t a classic heavily-shorted name. But with a market cap of $55 billion and short interest of 5.75%, shares maintain heftier bearish dollar exposure of around $3 billion and a respectable days-to-cover ratio of more than 2.5 trading sessions which can act as fuel for bullish buyers.
But Moderna has much more going for it.
The profitable, lifesaving biotech announced an extremely strong quarterly results this month and updated investors on a strong-looking product pipeline that extends beyond its Covid success. And today a purchase of this most-shorted stock is also set up for big time profit potential.
Technically, MRNA stock has reaffirmed the prior week’s double-bottom confirmation that’s formed around the 76% retracement level tied to its March 2020 Covid low. With stochastics offering a positive divergence pattern in relation to this most-shorted stock’s undercut formation, this one has the right type of Rx for buyers.
Most-Shorted Stocks to Buy: Coinbase Global (COIN)
Source: Charts by TradingView
Coinbase Global (NASDAQ:COIN) is the last of our market-leading, Nasdaq most-shorted stocks buy.
Without hesitation, North America’s largest digital currency platform has made bank for some its bearish 15% short interest. COIN stock is currently off 70% year-to-date and 84% from last April’s all-time-high print of $429.54 which occurred on its first day of trading as a public company.
Moreover, a fair chunk of those losses have occurred in May with shares of this most-shorted stock down 40% and bears emboldened by a crashing crypto market and Coinbase’s much weaker than expected quarterly results.
But this is no time to kick ’em when they’re down. It’s time to buy COIN stock while the majority are warning and fleeing the scene.
Technically, this most-shorted stock has put together a confirmed inside doji weekly bottoming pattern off channel support. Coupled with a climatic post-earnings volume reaction to new lows and COIN’s stochastics now also giving the green light, buying now has rarely looked as good.
On the date of publication, Chris Tyler did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
