A strong short squeeze candidate can excite investors across the market, both for its potential to reward those who have taken long positions and for the possibility that it will gain additional momentum as bearish investors are forced to buy shares to close their positions. The issue for most investors is that a short squeeze is notoriously difficult to predict, and even if the scenario does come to pass, it tends to be over quickly, leaving limited time to capitalize.
When searching for a short squeeze candidate, it can be helpful to look for companies that have noteworthy bearish signals and a potential catalyst that could set the process in motion. The companies below fit this description to varying degrees, but it will be up to investors to assess whether they are more likely to face a squeeze or a legitimate share price plunge.
