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A short squeeze occurs when a stock becomes highly shorted and an upward movement in price sets off a cascade of short sellers closing out their positions. As short sellers buy back their stocks to close out, the upward momentum is amplified.

We ran a screen of short squeeze candidates by searching for technically oversold stocks from the tech sector seeing significant increases in shares shorted month-over-month.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


Do you think these stocks are about to experience a short squeeze? Use this list as a starting-off point for your own analysis.

List sorted by increase in shares shorted as a percent of share float.

1. Travelzoo Inc. (NASDAQ:TZOO): Internet Information Providers Industry. Market cap of $705.31M. RSI(14) at 37.34. Shares shorted have increased from 3.58M to 4.48M month-over-month, a change representing 16.25% of the company's 5.54M share float. It's been a rough couple of days for the stock, losing 24.67% over the last week.

2. Camelot Information Systems Inc. (NYSE:CIS): Information Technology Services Industry. Market cap of $419.37M. RSI(14) at 19.08. Shares shorted have increased from 4.68M to 5.60M month-over-month, a change representing 3.47% of the company's 26.54M share float. The stock is a short squeeze candidate, with a short float at 16.76% (equivalent to 8.64 days of average volume). It's been a rough couple of days for the stock, losing 18.36% over the last week.

3. Silicon Laboratories Inc. (NASDAQ:SLAB)
: Semiconductor Industry. Market cap of $1.41B. RSI(14) at 38.08. Shares shorted have increased from 3.37M to 4.36M month-over-month, a change representing 2.43% of the company's 40.77M share float. The stock is a short squeeze candidate, with a short float at 10.65% (equivalent to 7.66 days of average volume). It's been a rough couple of days for the stock, losing 9.09% over the last week.

4. Freescale Semiconductor Inc. (NYSE:FSL):
Semiconductor Industry. Market cap of $4.95B. RSI(14) at 37.99. Shares shorted have increased from 7.52M to 8.43M month-over-month, a change representing 2.36% of the company's 38.64M share float. The stock is currently stuck in a downtrend, trading 16.55% below its SMA20, 22.79% below its SMA50, and 23.26% below its SMA200. It's been a rough couple of days for the stock, losing 17.29% over the last week.

5. Harris Corp. (NYSE:HRS): Communication Equipment Industry. Market cap of $4.39B. RSI(14) at 38.85. Shares shorted have increased from 11.76M to 13.42M month-over-month, a change representing 1.35% of the company's 122.97M share float. Might be undervalued at current levels, with a PEG ratio at 0.84, and P/FCF ratio at 11.52. The stock is a short squeeze candidate, with a short float at 10.58% (equivalent to 10.48 days of average volume). It's been a rough couple of days for the stock, losing 11.69% over the last week.

6. Systemax Inc. (NYSE:SYX):
Technical & System Software Industry. Market cap of $477.84M. RSI(14) at 37.12. Shares shorted have increased from 779.55K to 903.36K month-over-month, a change representing 1.17% of the company's 10.57M share float. The stock is a short squeeze candidate, with a short float at 6.81% (equivalent to 12.28 days of average volume). It's been a rough couple of days for the stock, losing 21.17% over the last week.

7. Entropic Communications, Inc. (NASDAQ:ENTR): Semiconductor Industry. Market cap of $305.88M. RSI(14) at 26.84. Shares shorted have increased from 26.12M to 27.10M month-over-month, a change representing 1.15% of the company's 85.14M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.59). The stock is a short squeeze candidate, with a short float at 31.93% (equivalent to 8.99 days of average volume). It's been a rough couple of days for the stock, losing 46.56% over the last week.

8. Advanced Energy Industries, Inc. (NASDAQ:AEIS): Diversified Electronics Industry. Market cap of $393.11M. RSI(14) at 32.83. Shares shorted have increased from 1.98M to 2.40M month-over-month, a change representing 1.13% of the company's 37.05M share float. The stock is currently stuck in a downtrend, trading 13.8% below its SMA20, 25.75% below its SMA50, and 32.11% below its SMA200. It's been a rough couple of days for the stock, losing 10.7% over the last week.

9. Itron, Inc. (NASDAQ:ITRI):
Scientific & Technical Instruments Industry. Market cap of $1.52B. RSI(14) at 37.85. Shares shorted have increased from 2.04M to 2.46M month-over-month, a change representing 1.04% of the company's 40.35M share float. The stock is a short squeeze candidate, with a short float at 6.09% (equivalent to 5.38 days of average volume). The stock is currently stuck in a downtrend, trading 10.02% below its SMA20, 14.79% below its SMA50, and 26.21% below its SMA200. It's been a rough couple of days for the stock, losing 13.62% over the last week.

10. Diodes Incorporated (NASDAQ:DIOD):
Semiconductor Industry. Market cap of $885.68M. RSI(14) at 35.34. Shares shorted have increased from 1.80M to 2.15M month-over-month, a change representing 1.01% of the company's 34.58M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.14). The stock is a short squeeze candidate, with a short float at 6.06% (equivalent to 5.67 days of average volume). It's been a rough couple of days for the stock, losing 10.32% over the last week.

11. Netgear Inc. (NASDAQ:NTGR): Communication Equipment Industry. Market cap of $1.02B. RSI(14) at 35.5. Shares shorted have increased from 1.42M to 1.75M month-over-month, a change representing 0.91% of the company's 36.19M share float. The stock is currently stuck in a downtrend, trading 13.93% below its SMA20, 22.44% below its SMA50, and 13.8% below its SMA200. It's been a rough couple of days for the stock, losing 14.96% over the last week.

12. Radware Ltd. (NASDAQ:RDWR): Information Technology Services Industry. Market cap of $543.59M. RSI(14) at 37.67. Shares shorted have increased from 221.04K to 332.23K month-over-month, a change representing 0.85% of the company's 13.03M share float. The stock is currently stuck in a downtrend, trading 9.5% below its SMA20, 12.36% below its SMA50, and 18.01% below its SMA200. It's been a rough couple of days for the stock, losing 10.29% over the last week.

13. Velti Plc (VELT): Business Software & Services Industry. Market cap of $588.80M. RSI(14) at 26.47. Shares shorted have increased from 1.07M to 1.42M month-over-month, a change representing 0.72% of the company's 48.74M share float. The stock is currently stuck in a downtrend, trading 31.63% below its SMA20, 30.98% below its SMA50, and 26.5% below its SMA200. It's been a rough couple of days for the stock, losing 34.43% over the last week.

14. Seagate Technology PLC (NASDAQ:STX): Data Storage Devices Industry. Market cap of $4.77B. RSI(14) at 32.14. Shares shorted have increased from 9.00M to 11.82M month-over-month, a change representing 0.71% of the company's 399.48M share float. Might be undervalued at current levels, with a PEG ratio at 0.92, and P/FCF ratio at 11.32. It's been a rough couple of days for the stock, losing 13.17% over the last week.

15. Alaska Communications Systems Group Inc. (NASDAQ:ALSK):
Telecom Services Industry. Market cap of $319.56M. RSI(14) at 37.64. Shares shorted have increased from 9.92M to 10.21M month-over-month, a change representing 0.65% of the company's 44.43M share float. The stock is a short squeeze candidate, with a short float at 22.93% (equivalent to 12.59 days of average volume). It's been a rough couple of days for the stock, losing 7.58% over the last week.

16. Semtech Corp. (NASDAQ:SMTC): Semiconductor Industry. Market cap of $1.32B. RSI(14) at 33.98. Shares shorted have increased from 4.64M to 5.04M month-over-month, a change representing 0.64% of the company's 62.86M share float. The stock is a short squeeze candidate, with a short float at 7.96% (equivalent to 7.34 days of average volume). It's been a rough couple of days for the stock, losing 10.26% over the last week.

17. Ceragon Networks Ltd. (NASDAQ:CRNT): Communication Equipment Industry. Market cap of $328.72M. RSI(14) at 39.21. Shares shorted have increased from 537.32K to 710.21K month-over-month, a change representing 0.63% of the company's 27.57M share float. The stock is currently stuck in a downtrend, trading 14.53% below its SMA20, 10.23% below its SMA50, and 11.67% below its SMA200. It's been a rough couple of days for the stock, losing 17.88% over the last week.

18. Plexus Corp. (NASDAQ:PLXS): Printed Circuit Boards Industry. Market cap of $945.01M. RSI(14) at 39.91. Shares shorted have increased from 2.37M to 2.58M month-over-month, a change representing 0.60% of the company's 35.19M share float. The stock is a short squeeze candidate, with a short float at 6.92% (equivalent to 6.92 days of average volume). It's been a rough couple of days for the stock, losing 13.85% over the last week.

19. Sprint Nextel Corp. (NYSE:S): Wireless Communications Industry. Market cap of $9.46B. RSI(14) at 19.35. Shares shorted have increased from 81.26M to 99.13M month-over-month, a change representing 0.60% of the company's 2.99B share float. The stock is currently stuck in a downtrend, trading 30% below its SMA20, 37.22% below its SMA50, and 32.29% below its SMA200. It's been a rough couple of days for the stock, losing 23.86% over the last week.

20. Stratasys Inc. (NASDAQ:SSYS): Computer Based Systems Industry. Market cap of $487.68M. RSI(14) at 38.38. Shares shorted have increased from 2.12M to 2.24M month-over-month, a change representing 0.59% of the company's 20.25M share float. The stock is a short squeeze candidate, with a short float at 11.15% (equivalent to 6.53 days of average volume). It's been a rough couple of days for the stock, losing 15.21% over the last week.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Squeeze Ideas: 20 Oversold Tech Stocks With Increasing Short Interest