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.

>>5 Stocks With Big Insider Buying

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.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author was long AAPL.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

If you liked this article you might like

Canada Wildfires, Saudi Shakeup Lift Oil and Markets

Canada Wildfires, Saudi Shakeup Lift Oil and Markets

Starbucks Hopes Changes to K-Cups Will Brew Up Even Bigger Sales

Another Slide in Crude Oil Beats Up Stocks

Stocks Trade Lower as Crude Settles Below $40

Stocks Maintain Lows as Crude Inventories Surge