If that breakout hits soon, then JCP could easily rip higher towards its next major overhead resistance levels at its 50-day moving average of $15.74 to $16.75 a share. If Ackman were to sell his stake, then JCP could see an even bigger squeeze back towards its next major overhead resistance levels at $20 to $23 a share. Any high-volume move above $23 will then give JCP a chance to tag its October high of $27 a share.
To see more heavily-shorted stocks the Wall Street whales are moving into, check out the Heavily Shorted Stocks Loved by Hedge Funds portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
Twitter and become a fan on Facebook.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts