JOBY and PLL are both moving higher, but only one shows a solid technical setup
For Schaeffer's Cheap Seats: Stocks Under $20 segment, we're taking a look at Joby Aviation Inc (NYSE: JOBY) and Piedmont Lithium Inc (NASDAQ:PLL), both of which are making sizeable intraday moves.
JOBY is up 28.4% to trade at $6.17, after Toyota Motor (TM) added on a $500 million investment -- on top of an original $394 million -- as part of a strategic alliance on commercial manufacturing. The shares are trading at their highest level since a July 30 bear gap, filling this level after three months of consolidation. Year-to-date, the stock is still 6.7% lower, but has reclaimed its year-over-year breakeven level today.
The short squeeze alarm is flashing. Short interest fell 6.5% in the most recent reporting period, yet the 70.94 million shares sold short still accounts for 15.6% of JOBY's total available float. At the stock's average pace of trading, it would take bears 10 trading days to buy back their bets.
PLL is up 18.7% to trade at $10.37, with no specific catalyst. The shares are poised to snap a three-day losing streak, and are trading at their 100-day moving average for the first time since late May. Longer term, the mining stock is 63% lower in 2024.
Despite the ugly technical backdrop, not a single analyst rates PLL a "sell" of the 10 in coverage. Brokerages turning bearish could make a sustained rally harder to come by for the stock.