Lumber Liquidators (LL - Get Report) has shown up the short sellers in 2016. The stock has skyrocketed as much as 55% since falling to $11.28 on May 18.

But it's now time to lock in some gains and wait for a pullback of around 10%.

The embattled flooring company earlier reported second-quarter earnings results that missed Wall Street's estimates on both revenue and profits.

That's not the story here, however. Thanks to its contaminated wood case related to the cancer-causing ingredient formaldehyde, expectations are still low for this company in terms of operational performance. But the stock -- up 8% over the past month -- has exceeded all expectations.

Take a look at the chart, courtesy of TradingView.

Lumber Liquidators shares closed Tuesday at $16.98, up 0.47%. Six month-gains are 33%. Despite this, the stock is down 2% year to date, underperforming both the 6% rise in the S&P 500 (SPX) index and the 4.6% rise in the SPDR S&P Retail ETF (XRT - Get Report) , meaning the company has been making up for lost ground.

On the positive side, Lumber Liquidators looks drastically different than it did a year ago, thanks to its recently announced settlement with the Consumer Product Safety Commission, including terms that don't require a product recall. This helps the company in the long term from a revenue perspective, but also because Lumber Liquidators is slowly putting its legal issues behind it.

But in the near term, and from a technical perspective, the stock will need to pause.

From the chart, you can see that the stock tested resistance multiple times at around $17.55 (the red line) without success. This suggests there are now more net sellers in the stock than there are buyers, which is understandable given the strong run the stock has enjoyed in such a short period of time.

And with second-quarter earnings now out of the way and no new catalyst to send Lumber Liquidators stock higher, the shares will struggled to hold the 20-day average at $16.58 (the blue line). The chart shows that selling pressure could push the stock toward support at $15.42, down about 10% from current levels.

Take profits now and wait for the inevitable pullback before buying back in.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.