Green Mountain Coffee Roasters
Last up is Green Mountain Coffee Roasters ( GMCR), a stock that I wrote about yesterday as a potential short squeeze name. Besides the hefty shorting in GMCR (the short interest ratio sits at 11.4), this stock is also showing some technical strength right now, a combo that could magnify this stock's upside potential in the near-term.
GMCR has been forming an inverse head and shoulders pattern, a setup that's formed by two swing lows that bottom out at approximately the same price level (the shoulders), separated by a deeper swing low (the head). Typically, inverse head and shoulders patterns show up at the bottom of a stock's recent price action -- not the case here. Instead, GMCR's setup is showing up at the top of its recent price action. But as I mentioned, whether or not the pattern is "textbook" matters a whole lot less than the supply and demand forces causing it. Either way, the trading implications look good in GMCR right now.The buy signal for Green Mountain comes on a breakout above its neckline at $82.50. When that level gets taken out, this stock becomes a high probability trade. From a risk-management standpoint, it makes sense to keep a protective stop just below the right shoulder. To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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