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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Hated Stocks That Could Get Squeezed Much Higher

Veeva Systems

One stock player that could be setting up for a large short-squeeze is Veeva Systems (VEEV), which provides industry-specific cloud-based software solutions for the life sciences industry in North America, Europe and the Asia Pacific. This stock has been under selling pressure from the bears over the last three months, with shares down by 15.7%.

>>5 Tech Stocks to Trade for Gains

The current short interest as a percentage of the float for Veeva Systems is extremely high at 46.6%. That means that out of the 15 million shares in the tradable float, 5.83 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 19.9%, or by about 1.16 million shares. This is a monster short interest on a stock with a very low float and this is stock that's starting to look very attractive from a technical standpoint.

If you take a look at the chart for Veeva Systems, you'll notice that this stock recently formed a double bottom chart pattern at $28.71 to $28.81 a share. Following that bottom, shares of VEEV have started to uptrend and the stock is now starting to break out above a key downtrend line. That breakout is quickly pushing shares of VEEV within range of triggering an even bigger breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in VEEV if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $33.41 to $33.76 and then once it clears more resistance at $35.59 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 813,403 shares. If that breakout hits soon, then VEEV could easily get squeezed back towards its next major overhead resistance levels at $40 to $43 a share.

Traders can look to buy VEEV off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $30 or around those double bottom support zones at $28.81 to $28.71 a share. One can also buy VEEV off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

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