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.
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