The percentage of net short position in Pets-at-Home (PETS) has rocketed in recent days. According to the latest FCA data, 7.4% of the stock is net short. Technically, the stock is vulnerable. It is not hard to see why. Many funds taking a negative punt on the stock, thus exerting downside pressure on PETS share price. A break of the 200p floor will confirm a top formation here; watch to sell if this happens (see Featured Chart).
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Meanwhile, the discount flight operator Easyjet (EZJ) is reported to have a 5.4% net short position outstanding. But this is not going well for the short sellers. Easyjet share prices have taken off and are now pushing into a major upside breakout at 1,300p (see below). Given that EZJ’s rally remains consistent – higher high and higher low – more upside in the next few weeks is expected from the stock. Interestingly, BritishAirways(IAG) is also developing a similar chart pattern akin to a base, so this is a sector move.
Without a doubt, Royal Mail (RMG) shareholders have had a disastrous 18 months. Prices slumped 68% from 640p to 200p (see below). But is the share ripe for a counter-trend rebound? Note that RMG’s downward momentum is slowing, with lateral support emerging at 190-200p. Perhaps investors are waiting to see if the coming Christmas trading is better than expected. To complete a base breakout requires a breakout the 240p resistance. Watch to buy.
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