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Before jumping into a stock, it’s important to gauge the market’s sentiment regarding the company. Whether traders are more bearish or bullish lately, it’s good to know whether you’re moving with or against the trend.

We ran a screen on tech stocks with rather bullish market sentiment. We screened the tech sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages for those seeing significant decreases in shares shorted month-over-month, a bullish change.

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.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month.

(Click chart for more detail)
Do you think these stocks will continue moving higher? Use this list as a starting-off point for your own analysis.

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

1. Sify Technologies Limited (SIFY): Provides enterprise and consumer Internet services primarily in India. Market cap of $269.42M. The stock is currently trading at 31.24% above its 20-Day SMA, 22.59% above its 50-Day SMA, and 17.42% above its 200-Day SMA. Shares shorted have decreased from 3.68M to 3.33M month-over-month, a change representing 7.48% of the company's 4.68M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.4). It's been a rough couple of days for the stock, losing 19.84% over the last week. The stock has had a good month, gaining 75.96%.

2. Cree, Inc. (CREE): Develops and manufactures light emitting diode (LED) products, silicon carbide (SiC) and gallium nitride (GaN) material products, and power and radio frequency (RF) products. Market cap of $3.58B. The stock is currently trading at 14.54% above its 20-Day SMA, 15.77% above its 50-Day SMA, and 15.77% above its 200-Day SMA. Shares shorted have decreased from 19.44M to 15.57M month-over-month, a change representing 3.44% of the company's 112.61M share float. The stock has had a couple of great days, gaining 15.92% over the last week.

3. Synaptics Inc. (SYNA): Develops and supplies custom-designed human interface solutions that enable people to interact with various mobile computing, communications, entertainment, and other electronic devices. Market cap of $1.10B. The stock is currently trading at 10.30% above its 20-Day SMA, 26.70% above its 50-Day SMA, and 27.13% above its 200-Day SMA. Shares shorted have decreased from 6.99M to 5.92M month-over-month, a change representing 3.37% of the company's 31.78M share float. The stock is a short squeeze candidate, with a short float at 18.54% (equivalent to 10.06 days of average volume). The stock has had a good month, gaining 30.25%.

4. VirnetX Holding Corp (VHC): Engages in developing and commercializing software and technology solutions for securing real-time communications over the Internet. Market cap of $1.11B. The stock is currently trading at 23.20% above its 20-Day SMA, 17.66% above its 50-Day SMA, and 2.70% above its 200-Day SMA. Shares shorted have decreased from 11.89M to 10.98M month-over-month, a change representing 2.45% of the company's 37.21M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.29). The stock is a short squeeze candidate, with a short float at 29.98% (equivalent to 7.31 days of average volume). The stock has had a good month, gaining 40.66%.

5. Jabil Circuit Inc. (JBL): Provides electronic manufacturing services and solutions in the Americas, Europe, and Asia. Market cap of $4.31B. The stock is currently trading at 2.81% above its 20-Day SMA, 12.98% above its 50-Day SMA, and 7.40% above its 200-Day SMA. Shares shorted have decreased from 9.45M to 5.26M month-over-month, a change representing 2.29% of the company's 183.19M share float. The stock has had a good month, gaining 11.34%.

6. Rediff.com India Ltd. (REDF): Provides online Internet based services in India and to the global Indian community. Market cap of $292.01M. The stock is currently trading at 29.45% above its 20-Day SMA, 29.93% above its 50-Day SMA, and 15.31% above its 200-Day SMA. Shares shorted have decreased from 1.48M to 1.25M month-over-month, a change representing 1.69% of the company's 13.59M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.43). It's been a rough couple of days for the stock, losing 8.6% over the last week. The stock has had a good month, gaining 70.77%.

7. VMware, Inc. (VMW): Provides virtualization and virtualization-based cloud infrastructure solutions primarily in the United States. Market cap of $42.04B. The stock is currently trading at 4.54% above its 20-Day SMA, 9.50% above its 50-Day SMA, and 9.99% above its 200-Day SMA. Shares shorted have decreased from 4.35M to 3.39M month-over-month, a change representing 1.23% of the company's 77.80M share float. The stock has had a good month, gaining 13.6%.

*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: 7 Rallying Tech Stocks Seeing Bullish Short Trends