Cup and Handle

lauralea Updated   
NYSE:DDS   Dillard's, Inc
Earnings beat yesterday. I think Dillard' beat by quite a bit.
Short percent is high on DDS at around 16% and could explain the high gains on this stock due to short covering. 6% of the group have covered their short at this point so there are plenty more who remain short.

Price has been in a large horizontal trading channel for quite some time.
The cup formed within this channel.
Price is just over the resistance line of the Rectangle and I turned it blue. Blue meaning it is not quite resistance anymore but not quite a support level yet either.
(Green to me is a strong support level . Red is a strong resistance level and orange is a weaker or possible new resistance level ).

Targets in green above the cup are possible targets long.
Orange type below rectangle are possible targets if rectangle breaks to the downside.

A lot depends on this latest rally to the upside so be safe.
Shorties are usually pretty good at this kind of stuff and it seems as a rule short interest is high when the stock has fundamentals that are weak.
I need to figure out what the deal is with DDS and why short is so high. If you know, let Me know (o:

No recommendation

I just took a hard look at this chart from a few years back to try and figure out why short interest is so high. There are a few old Rising wedges that were never broken so they are not valid as of yet, so does not really explain the high short interest right now. When price reaches those levels, there will be too much supply and a selling frenzy will most likely occur but no telling when that will happen..

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.