$CEMP Cempra is at trend line technical & psychological resistance from Q3 2013. Many traders must see this also as short interest has been spiking as show in the bottom panel (data gleaned from FINRA, NYSE & NASDAQ and provided by Quandl). The lower trend line sits approximately at a L5 Cyclical Support level and would be a likely target and initial location for covering. If price pops above $30, a short squeeze would take place and provide fuel for a run close to $33-34. Earnings are coming up Feb Cempra is a highly levered, high debt speculative bio tech specializing in bacterial infections. EV/Ebitda = (15.81), P/B = 23.29, I believe $CEMP is working itself into a corner (price-wise) within this rising wedge. This indicates investors may be running out of patience. The more explosive move looks to be to the downside. I have a small speculative short position going into earnings. Nothing big. I probably should have executed a bearish call spread and limited risk and profit also as this bio tech arena is volatile.
