Spotting Opportunity in High Short Interest Stocks

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•  21 Jun 2025
 

•   NRG  
   
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High short interest stocks often signal potential volatility and trading opportunities. Let’s review key names where recent short interest shifts could hint at near-term moves.

NRG Energy’s short percent of float fell by nearly 4%, signaling shorts are closing positions. The stock trades near $152, supported by a strong RSI and an uptrend above key moving averages. With a healthy PE and solid earnings, the fundamentals back the technical strength, making $NRG a stock to watch for continued bullish momentum.

Medtronic saw a massive 42% drop in short interest, reflecting rising confidence. Trading at $86 with stable RSI and price above its 50-day average, the stock’s solid fundamentals reinforce this optimism. This combination suggests traders are favoring long positions over short bets.

Though Kenvue’s short float dropped over 34%, the stock remains in a downtrend around $21. RSI is low, and momentum is weak. This suggests that while some shorts are covering, broader bearish sentiment still weighs on the price, calling for caution.

AstraZeneca shows a modest 8% decline in short interest but trades sideways near $70. Momentum indicators are neutral, signaling indecision. The slow short interest drop hints at a potential shift, but confirmation is needed before a clear directional move emerges.

AMSC short interest fell nearly 9%, coinciding with an uptrend and RSI above 60. Despite a very high PE ratio caused by low earnings, the technical setup points to improving sentiment and a potential near-term rally.

UHS has seen a 14% short interest decrease, yet the stock remains range-bound near $172 with low momentum. The retreat of short sellers is positive, but the sideways pattern suggests patience until a clearer breakout.

Honda Motor’s short interest jumped over 20%, indicating increased bearish bets. The stock trades sideways near $29 with moderate RSI, suggesting growing caution among investors and the possibility of pressure on the price ahead.

Cheesecake Factory’s short float rose slightly by 3%, but the stock is in a strong uptrend with RSI above 65. This slight increase may be profit-taking by shorts rather than a serious bearish signal, keeping the uptrend intact.

Teradyne saw an 11% drop in short interest alongside a steady uptrend near $86. With healthy earnings and a supportive RSI, the market sentiment appears positive, hinting at continued strength.