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On Tuesday, Tibco Software (TIBX – 88-3/8) posted third-quarter earnings of seven cents per share, topping analysts' forecasts by two cents per share. In reaction to this positive earnings surprise, the stock gapped nearly 10 points higher at this morning's open and reached as high as 96-3/4 before reversing. The shares are now in the black by nearly four points, or more than four percent, as they are trading back below their 20-day moving average. TIBX has not closed a session above this short-term trendline since September 8.
Short interest on the equity has soared since mid-April, rising from a mere 169,871 shares to August's reading of 2.53 million shares, an all-time high. If TIBX is able to maintain today's upward momentum, a short-covering rally could ensue, which might give the security an extra boost over the near term.