Will Earnings for $AEIS Trigger a Short Squeeze? – January 26, 2023


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This is Scott with your Chart of the Day. I want to take a quick look at Advanced Energy Industries, Inc.( NASDAQ: AEIS ). Now, AEIS ( NASDAQ: AEIS ) has earnings coming up on February 8th. And as you can see, it has just kind of been chopping around sideways.

It has basically just gone sideways for well over a year, about a year and a half. And it keeps bumping up against this clear resistance level, right around $96.00. Right there, right there, right there, a big fall back, right back to it, rejection, right back to the lows, and like a magnet, right back to resistance here.

And so this is a pretty key level, and with earnings coming up I’m wondering if there may be a little bit of an earnings run fueled by a potential short squeeze. I was on MarketSmith a moment ago, looking at AEIS ( NASDAQ: AEIS ) and as you can see here, from MarketSmith, there are 10 days of short interest. So it is going to take the shorts a lot of volume to cover.

And the thing is, this kind of has a little bit of a small float, only 36 million in the float. So I don’t know if there is potential for a short squeeze here, but it has some of the right ingredients. It is at a pretty clear level of resistance. If I was short and I didn’t cover yet, a break above this level would probably force me to do so. So this is definitely an area of interest that I’m looking at here for AEIS ( NASDAQ: AEIS ).

I am going to set an alert on my chart platform right around that 96.17 zone and look for a strong move coming on volume. Now, because this does have a small float it is probably going to have a bit of a widespread, so you may want to watch your size on this. But it is definitely a stock that I am watching for a break above that $96.00 level.

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