August 7, 2026
Short-Squeeze Continuation
SpaceX (SPCX) delivered a textbook bullish breakout today, closing at 133.11 after surging cleanly above the post-earnings gap high. This was no ordinary move—it was accompanied by continually increasing volume throughout the session and a strong close on elevated volume, exactly the kind of institutional footprint we look for in high-conviction setups.
The daily, multi-day, and hourly charts all confirm the same message: short sellers have been right on this one, but the tide is beginning to shift. The major question relates to how long they will continue to hold. The higher the price moves, the less likely they are to continue to hold. Buying to cover causes further upside price action, which can only propel the move higher.
At this point, the stock has reclaimed key moving averages, punched through the residual supply from the earnings gap, and finished near the day’s highs. Volume expanded steadily as price advanced, and the final push into the close left no doubt that demand is in control.
The technical setup is one thing, but the major fuel to the fire is SPCX’s short interest, which sits above 30%. When a stock with this level of short exposure prints a high-volume breakout and strong close like we saw today, the stage is set for forced covering. Historically, moves of this character frequently produce a gap-up open in the following session. In this case, the next session is on Monday.
My plan is straightforward:
If SPCX gaps higher on Monday, I will be a buyer of more shares. The combination of technical breakout + expanding volume + elevated short interest creates the classic conditions for a sustained short squeeze. The next upside targets I am watching are $150 and then $170.This is the type of setup that can create an explosive short squeeze. A positive earnings report, a major influx of incoming volume post-earnings, clear technical breakouts confirmed by volume, and a major catalyst in the form of trapped shorts.
Have a great weekend!
Danielle Shay
