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Shares shorted is a great indicator for the market’s sentiment about a stock – when a stock sees more shares shorted over time, it indicates that traders have become more bearish on their outlook for the company. In the same way, fewer shares shorted is a bullish trend.

We screened for stocks exhibiting the technical signal “golden cross,” in which their 50-day moving average crosses above their 200-day MA in a show of upside momentum. We screened these stocks for those with significant decreases in shares shorted month-over-month.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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. To access a complete analysis of this list's recent performance, click here.

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. 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 $1.03B. SMA50 at $27.51 vs. SMA200 at $27.03 (current price at $32.23). Shares shorted have decreased from 5.92M to 5.02M month-over-month, a change representing 3.36% of the company's 31.80M share float. The stock is a short squeeze candidate, with a short float at 18.54% (equivalent to 10.36 days of average volume). The stock has had a good month, gaining 12.89%.

2. Regal Entertainment Group (RGC): Operates a theatre circuit in the United States. Market cap of $2.18B. SMA50 at $13.04 vs. SMA200 at $12.81 (current price at $14.43). Shares shorted have decreased from 20.22M to 18.60M month-over-month, a change representing 1.90% of the company's 85.08M share float. The stock is a short squeeze candidate, with a short float at 15.61% (equivalent to 10.18 days of average volume). The stock has gained 10.31% over the last year.

3. Express Inc. (EXPR): Operates specialty retail stores in the United States. Market cap of $1.99B. SMA50 at $21.09 vs. SMA200 at $20.35 (current price at $22.21). Shares shorted have decreased from 4.14M to 3.52M month-over-month, a change representing 1.80% of the company's 34.41M share float. The stock has gained 52.24% over the last year.

4. Sanderson Farms, Inc. (SAFM): Engages in the production, processing, marketing, and distribution of fresh, frozen, processed, and prepared chicken products. Market cap of $1.08B. SMA50 at $45.59 vs. SMA200 at $44.52 (current price at $49.58). Shares shorted have decreased from 4.30M to 4.11M month-over-month, a change representing 1.17% of the company's 16.27M share float. The stock is a short squeeze candidate, with a short float at 20.57% (equivalent to 11.84 days of average volume). The stock has gained 17.94% over the last year.

5. Pier 1 Imports, Inc. (PIR): Operates as an importer and specialty retailer of imported decorative home furnishings and gifts in the United States, Canada, and Mexico. Market cap of $1.39B. SMA50 at $11.21 vs. SMA200 at $10.87 (current price at $12.99). Shares shorted have decreased from 6.14M to 5.96M month-over-month, a change representing 1.12% of the company's 94.07M share float. The stock has had a good month, gaining 19.17%.

6. Group 1 Automotive Inc. (GPI): Engages in the marketing and sale of automotive products and services. Market cap of $1.03B. SMA50 at $40.65 vs. SMA200 at $40.51 (current price at $45.86). Shares shorted have decreased from 2.61M to 2.43M month-over-month, a change representing 0.90% of the company's 19.98M share float. Might be undervalued at current levels, with a PEG ratio at 0.77, and P/FCF ratio at 5.56. The stock is a short squeeze candidate, with a short float at 12.14% (equivalent to 7.75 days of average volume). The stock has had a good month, gaining 11.62%.

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

Source: 6 Momentum Plays With Bullish Short Trends