Every week I screen for stocks for my swing trading portfolio. The following stocks made the cut to be on my watch list for this week:
Restoration Hardware ($RH) is trading near 52 week highs and it has a huge 52% short interest. When a stock with a huge short interest gets momentum, the opportunity exists for a nice break out.
Below is the 10 day chart of $RH. Note the pennant forming after the gap up. This can be a bullish signal.
Matador Resources Company ($MTDR) is similar to $RH as it is also trading near 52 week highs and has a big 17.8% short interest. Additional momentum in this stock could pressure the shorts and lead to a breakout. One point of caution is that this one is not in the best sector.
Below is a 10 day chart of $MTDR. It also has a pennant forming after the gap up. This can be a bullish signal.
Ollie’s Bargain Outlet Holdings ($OLLI) is another stock that is trading near 52 week highs and has a big 19.2% short interest. This stock has been in a nice uptrend for several months and recently broke out of a long-term acceding channel.
Below is a one-year chart of $OLLI. Note the acceding channel from January and the breakout in April. Again, a big short interest and momentum could lead to a further breakout.